According to traditional customs, giving lucky money at the beginning of the year is a way for adults to send wishes of luck, health and wealth to children through red envelopes during the Lunar New Year. For families with 2-3 children, the lucky money can sometimes reach tens of millions of dong. What many parents wonder is what to do with this money to ensure its value and teach their children how to manage finances from a young age.
Many families choose to save money in banks, considering it the safest form. Mr. Minh Hoang (Nam Tu Liem, Hanoi), who has two young children, shared: "Every year after Tet, I usually open a bank savings account for my children to save. The interest is not large, but I consider it a reserve fund that my children can use when necessary. My children all agree with this option, because I explain that this money will be used to serve important educational needs in the future."
Saving money has the advantage of being safe, having a stable interest rate and parents can easily manage their money. However, the limitation of this option is that the current savings interest rate is not high, making it difficult to keep up with inflation, especially during periods of rising prices.
Some other families choose to buy gold from lucky money, especially when the children are quite interested in this idea. Ms. Thu Ha (Gia Lam, Hanoi), mother of three children, shared: “After discussing with my children, I decided to use part of the lucky money to buy gold, which both retains its value and is easy to preserve. I explained that gold is a long-term asset, and the children can keep it as a souvenir or use it when needed in the future.”
Gold has the advantage of holding its value well, being less affected by inflation and generally increasing in value over the long term. However, the price of gold can fluctuate in the short term and needs to be stored carefully.
In addition, many families decide to use lucky money for other needs such as buying school supplies, organizing experiential activities for their children, or even buying life insurance for their children. These options help children have the opportunity to enjoy life, while ensuring a long-term and secure financial foundation. However, if not well controlled, lucky money can be wasted or not bring practical value.
Ms. Lan Huong (an experienced parent and personal financial investor) shared that the use of children's lucky money should be carefully considered with long-term goals. Ms. Huong said: "I often divide my children's lucky money into small amounts, one part is used to buy gold to keep its value for a long time. The rest is invested in studying or experience. I always make a specific plan to ensure that the money is used for the right purpose, avoiding waste or using it for things that are not really necessary."
The story of your child's lucky money is not only an investment story, but also has a profound educational meaning. Using this money is an opportunity for parents to teach their children how to manage assets, the value of saving and investing. An effective solution is to discuss with your child, explain the meaning of each choice and guide your child to appreciate the value of money.
Whether choosing to save, buy gold or use it for other purposes, parents need to consider based on the family's financial situation and long-term goals for their children. Using lucky money wisely not only helps protect the value of the money but also teaches children meaningful lessons about financial management from an early age.
