Red packets may be filled with small amounts of cash, but for many Singaporean families, they hold far more than festive cheer — they’re an opportunity to teach children lifelong money lessons and even kick-start their financial journey.
While ang pow money often ends up spent on toys or treats, financial experts say it could do so much more. Used wisely, these cash gifts can help parents introduce saving, investing, and money management to their kids in simple and practical ways.
According to Samantha Horton, Chief Operating Officer at Syfe, turning red packet money into long-term wealth isn’t just possible — it’s easy to start, even with modest amounts like $50 or $100.
“Even small amounts, like $50, can grow significantly over time. It’s not about the amount – it’s about starting early and showing kids how their money can work for them,” says Samantha.
How to Make Ang Pow Money Work for Your Child’s Future
Samantha offers several practical strategies parents can use to make the most of their children’s red packet money. Here’s how to get started:
Start with a Visual Analogy
When explaining the concept of investing to young children, abstract ideas can be hard to grasp. That’s why Samantha uses simple visuals they can relate to.
“I explain to my kids how money grows by using simple analogies, like planting a seed and watching it grow into a tree. It’s a relatable way to introduce the idea of compounding.”
This makes the concept of growth over time more tangible and helps kids understand that money doesn’t have to just sit in a bank account — it can actually grow.
Let Them See the Growth
Children love visuals, and nothing is more motivating than seeing actual numbers go up. Samantha recommends setting up investment accounts for children to monitor together.
“I’ve set up investment accounts for my children and let them see their portfolios grow. Watching the numbers change over time makes investing feel real and exciting, even at a young age.”
This hands-on approach builds familiarity and confidence with money early on.
Turn Saving Into a Game
Making financial habits fun can go a long way, especially with younger kids. Samantha suggests gamifying saving by offering small rewards or matching their contributions.
“If they receive $200 from their ang pow money, I’ll match it, reinforcing the value of saving consistently.”
This not only motivates children to save, but also teaches them that small efforts can be amplified — just like investments over time.
Involve Them in Decisions
As kids get older, giving them a say in where their money goes helps them feel empowered and engaged. It also introduces them to concepts like risk, sectors, and ethical investing.
“I plan to let them help choose where to invest. For example, they might pick ETFs linked to companies they recognize, like tech or sustainability-focused brands.”
Involving them in decision-making builds ownership and curiosity about how the world of money works.
Set Goals They Actually Care About
To keep children motivated, link money habits to something they already want. Whether it’s a new toy, a trip to Universal Studios, or even saving up for a bicycle, giving savings a purpose helps it feel real.
“Link saving and investing to something they care about, like saving for a new toy or building up funds for a future trip. This makes the process feel rewarding and achievable.”
Goal-setting also introduces kids to budgeting and delayed gratification — powerful skills that will benefit them well into adulthood.
Making It Easy for Busy Parents
Many parents may want to get started with investing but feel overwhelmed by the learning curve or simply don’t have the time. That’s where platforms like Syfe come in.
Samantha understands this challenge firsthand.
“As a busy parent myself, I understand how challenging it can be to find time to focus on managing finances, let alone learning the complexities of investing.”
Syfe is designed to make smart financial decisions accessible and stress-free, even for those with little investment experience.
“First, we simplify the entire process. Syfe offers expert-managed, diversified portfolios, so parents don’t need to worry about selecting individual investments. Our portfolios are tailored to different goals – whether it’s saving for your child’s education or building long-term wealth – making it easy to align investing with your priorities.”
Everything from reinvesting dividends to managing portfolio adjustments is automated, so investments work behind the scenes with minimal effort. There are no high entry barriers, so parents can start small and build wealth gradually through dollar-cost averaging.
“To support decision-making, our platform provides clear insights and educational resources, such as the Investing Simplified series, which breaks down complex concepts into easy-to-understand advice.”
“At Syfe, our goal is to empower busy parents to grow their wealth confidently, saving them time while providing the tools and expertise to secure their family’s financial future.”
Start Now, and Grow Big
You don’t need to be a financial expert to start investing in your child’s future. All it takes is a bit of intention, some consistency, and the willingness to learn as you go. That ang pow money sitting in a drawer could become the foundation of something far greater.
“You don’t need to be an expert. You just need to get started,” says Samantha.
By turning small gifts into smart investments, you’re not just saving — you’re teaching your child the value of growth, patience, and financial confidence that will last a lifetime.
