Face Off: Should parents be in charge of their child’s red packet money?
- Each week, two readers debate a hot topic in a showdown that doesn’t necessarily reflect their personal viewpoints
- This week, they discuss whether young people should have the ability to decide what to do with the money they receive during Lunar New Year
Face Off: Should parents be in charge of the money a child receives in a red packet? Photo: Shutterstock If you are interested in joining future Face Off debates, fill out this form to submit your application.
For: Valerie Shek, 13, Independent Schools Foundation Academy
As we all know, red packet money is a Chinese tradition, where elders give it to children on special occasions like the Lunar New Year. While some parents let their children keep their red packet money, some prefer not to.
Parents should be in charge of the red packets as children will grow up knowing how to handle money and understand the importance of financial responsibility. They can guide their offspring to make better choices and teach them good financial habits.
Youth often lack knowledge of how to handle money, and their elders should take this as an opportunity to teach their children about the importance of saving. Parents can better educate youngsters about the value of money, the importance of budgeting, and the consequences of impulsive spending.
What are you doing with your red packet money this Lunar New Year?
If parents take this opportunity to teach their children about financial responsibility, it can significantly and positively impact their future well-being. By instilling good financial management skills and habits from a young age, children are more likely to grow into responsible adults, reducing stress and improving financial security.
Furthermore, by managing a child’s red packet money, parents and guardians can teach them the value of money.
In recent times, the value of the red packets can run into hundreds and thousands of dollars. Hence it is crucial for young people to understand that money is earned through hard work and dedication and should not be taken lightly.
By involving children in discussions about the source of the red packet money, parents can help them develop a sense of gratitude and appreciation for the generosity of others.
Elders should take the initiative to create a savings account specifically designated for the child’s red packet money. This money can then be used in the future for things like college expenses. Children can also be involved in the process of setting up the account so they can understand how it works. Parents can demonstrate the benefits of saving money by regularly updating the child on the account balance. Children can grow up to become independent and financially responsible people if they are educated about the importance and benefits of saving.
Against: Charis Chan, 14, Malvern College Hong Kong
Traditionally distributed during the Lunar New Year, red packets bring delight to kids everywhere. However, it raises the question of whether parents should take charge of the money collected from red packets.
I’m afraid I have to disagree that elders should have control over their children’s money, even if some claim that parental supervision guarantees appropriate use.
Parents taking charge of red packet money would harm the trust factor in the relationship. Instead, giving children financial management responsibilities would develop their ability to make sound decisions, promote financial independence and instil a sense of accountability and ownership.
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Children will have a greater desire to buy secretly when parents control their red packet money. Young people naturally feel joyful after receiving red packet money and would be upset when it gets confiscated.
This aligns with the theory of parents yelling at their kids: children tend to get more aggressive and defiant when shouted at. This prevents parents from achieving their initial goal of adjusting their children’s misbehaviour.
The same applies to the cause of red packet money: children will feel disappointed when they don’t have control over their own money that is received once a year. Therefore, it will lead to them spending money without their parents knowing and using it inappropriately. This may even lead to children doing more things without parental supervision.
Furthermore, the opportunity for financial education is lost when parents control the money that children get from red packets. The youth need to learn financial skills that are essential for their future, such as evaluating needs versus wants, making trade-offs, and prioritising which expenses are needed.
Besides, isn’t it better to make mistakes when spending money as a child versus when you are an adult?
Youth being in charge of their own red packet money may cultivate decision-making skills and foster financial responsibility.
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In conclusion, giving children financial autonomy is essential for their long-term development regarding financial independence and for a healthy relationship between parents and children.
Thus, parents should not take the money that children get from red packets.