You are currently viewing What to do with Ang Bao Monies?

What to do with Ang Bao Monies?

As the new year celebration comes to a close, many of my clients raised an interesting topic/question to me: What should we do with our own / children Ang Bao Monies?

We have an answer for you – Invest it.

Benefit 1: Give them a Headstart

The #1 advantage that children have is ‘Time’ and investing their angbao/birthday money may be one of the best choices that you can make for them. After all, you can always give your children more money but you can never gift them more time.

Albert Einstein once said that “Compound interest is the eighth wonder of the world”. Indeed. By starting 10 years early, you can potentially double their wealth if you make a return of 7%p.a. 


Years of investment

Value of $10,000
at 7%p.a

Value over capital of $10,000






















Benefit 2: Help them understand the nature of investment & the many different types of businesses

The value of investments will fluctuate. By starting them early and by showing them the ups and downs of their portfolio, you help your child understand that investment can be volatile and that getting from point A to B will not be a smooth line up. This will help them in their future endeavors when they also start investing on their own- to not make emotional decisions. The pricing often doesn’t mean much unless you need the money.

Beyond the above, teaching your children about investment is also a good opener to talk about the many different types of businesses and occupations in the world. Talking about a relatable company (such as Disney/Apple) or a meaningful sector (sustainability and clean energy) can trigger meaningful conversations. And who knows, they may be inspired through the process and discover their passion.

Benefit 3: Build a healthier relationship with money

To most children, money is what allows them to buy/experience things. To pay for food, to buy toys. Even for children who already have a habit of saving, many do it so that they can afford/ buy something in the future.

However, this comes from a space of ‘scarcity’. They need to save, so as to ‘have’. They save money so as to ‘spend it’.

On the other hand, by teaching kids to invest, we also teach them the concept of abundance and growth. Because by making better choices, we can potentially have more – and not just more for ourselves but for others too. 

If you wish to find out more about starting an investment account for your children (or for yourself if you haven’t), do chat us up via chat/whatsapp/email.

Cheers and happy month of March ahead!

Pinnacle Wealth Advisory will see you in the next newsletter!

Pinnacle Wealth Financial Advisory

Leave a Reply