How to get FREE money for ang baos you’ll have to give out during CNY
With the wedding just around the corner, this year's CNY visitations were particularly significant as it marked the last time I can get my ang baos. After we're married, we'll need to start giving out ang baos instead - so that means every CNY henceforth will be an immediate deficit in our wallets.
Seeing all the children get so much in ang bao money made me wonder - what if they had savvy parents who knew how to invest their money for them, so that they never had to fork out a single cent for future ang baos after they get married in the future?
|Photo credit: The Singapore Women's Weekly|
Let's imagine this scenario plays out:
Some say 8% for 30 years is too difficult. Let's look at 5% then, which is the risk-free rate given by CPF right now. Doing such a move can still yield you 26.5 years worth of future ang baos to give out. If you top that up with your own cash, that sum can grow even further.
(Of course, most kids spend their ang bao money - although I put mine straight in the bank when I was a child, I was guilty of spending on music CDs, stickers and Enid Blyton storybooks when I was younger too.)
Dang, if only my parents had done this for me.
Parents, would you consider doing this for your children?
P.S. Another way to get "free" money for your ang baos is to utilise your credit cards for maximum cashback and rebates. (I use this site to compare my credit cards before applying for any.) Store the money in a separate account and use it to partially offset your ang bao expenses every year from then on!