Show Me the Money! New Years Equals Money For Chinese Children

Chinese New Year is just around the corner. In order to commemorate, and better understand the cultural significance of CNY, enoVate will explore a multitude of themes surrounding this great tradition.

With Chinese New Year’s approaching, unemployed Chinese youth are buzzing with excitement. Not only do they get treated to a delicious New Year’s meal and fireworks, they also get a generous “hong bao” (红包). Simply put, a hong bao is a red envelope filled with cash that relatives give to kids. The tradition dates back to days of old, when hong baos were believed to exorcise evil spirits in children. Today, it’s given as a present from elders wishing the best for young relatives. It’s generally given to kids when visiting family elders. Being paid to spend time with the gramps? Not bad! Parents will also leave hong baos on their children’s pillows. No matter if you’re giving or receiving, it’s a joyful occasion.

Hong baos generally contain much more money than kids are accustomed to having throughout the year. So how do kids spend their New Year’s money? Education Online held a poll asking this very question.  32% of the respondents received RMB500-1000 and 28% of them get up to 1000-2000. This is a lot of money for youngsters. How do they handle it? Data shows that 37.06% of the respondents make a compromise, allowing mom and dad to take care of part of the cash. Only 18% manage their own money, while 26% don’t have any say as to how their hong bao, money gets spent. Among those who manage their own money, they admit to spending about half on books and school supplies. Other options include toys, entertainment, clothing, courses, and even donations.

By allowing Children to manage large sums of hong bao cash, parents tend to believe that they are cultivating their child’s ability to manage their finances. However, problems arise. There even comes the news that a 17-year-old buying ketamine with his gift money. Some children still cannot totally control themselves and they will easily develop a sense of greed with lot of money. Therefore, parents have to guide their children how to deal with their pocket money. In response, The Shenyang Daily made some suggestions to parents as New Years approaches: 1. Send useful cards like library cards or gym membership card instead of real money. 2. Buy insurance for children. 3. Establish an education fund. I like toys and candy better.