From Green Packets to Evergreen Principles

Published 27 Apr 2023

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By Fi Life Team

From Green Packets to Evergreen Principles.

One of the highlights of Aidilfitri for children is the Raya green packets. But did you know they’re also a chance for you to spend time together and teach your kids about money?

Read on for some steps to make the most of this opportunity.

First, get your kids to gather all their green packets for a counting session. That should get them excited for what’s to come. Then, get them to divide the money into three equal parts.

One for saving. One for investing. And one for spending.

Explain to them why saving is important and what they can do with the money in the future. Encourage them to ask questions. Also think of some examples together of what they can save for, like purchasing a house, travelling overseas, or preparing for emergencies.

This will make it easier for them to understand why they can’t spend it all on a PS5 now.

After that, you can help them open a bank account, or if they already have one, deposit the money into it. This will prevent them from getting the wrong ideas about banks or ATMs (they’re not magical cash dispensing machines). You need to make deposits first in order to withdraw later.

Next, you can show them how to start investing their money. You can choose a robo-adviser app licensed by the Securities Commission Malaysia (SC).

It’s best to start with an app because of the super low fees. They also make it easier for you and your kids to check their investments regularly and discuss how they are performing and what factors affect them.

This will give you a regular topic to talk about with your children. Sharing a common interest (in this case their money) and having regular conversations about it is one of the best investments in time you could make.

And if you happen to make some extra money together, even better.

Finally, let your kids spend the final portion. Take them to the mall and allow them to get what they want (within reason, of course) so they feel empowered to enjoy money after they’ve learned to manage it.

And you can enjoy the time spent together even more knowing your kids have a sound financial foundation that will keep their Raya green packets … evergreen.

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