A mere ten years ago, when our friends wanted to go to the movies after school we had to beg, grovel, and cry until our parents gave us money to buy a ticket and some popcorn. However, in today’s cashless society, with things like WeChat’s Relative Cards, children may never have the opportunity to experience that.

Instead of giving your children physical cash as an allowance, they can now receive an allowance straight on their phone that will replenish itself monthly, so you won’t have to worry about them having funds wherever they go, as well as being able to teach them how to budget.

The way to set up a Relative Card for your child or children is quite simple.

How to Set Up a Relative Card

Step 1:
Go to your WeChat profile page and click on “WeChat Pay”

Step 2:
After that, click on your Wallet

Step 3:
Once you open up your Wallet, click on the tab that says “Relative Cards”

Step 4:
You will then see the option to gift a Parent-Child Relative Card by clicking on the orange button that says “Send”

Step 5:
Once you do so, you will see three types of Relative Card options; Father, Mother, Child

Step 6:
Once you select the type of Relative Card you would like to create, you will be asked to set a monthly limit for the recipient. The limit you set will renew every month and caps at RMB 3,000

Step 7:
After you set the monthly limit, confirm by entering your payment password

Step 8:
After it’s confirmed, the card will be available for use and all your child will need to do is open up their chat log with you and accept the Relative Card.

This article appeared in the beijingkids 2020 March – April issue
Photo: Getty Image

I recently wrote about raising kids with allowances. I outlined a number of benefits of doing so, with one of the most important ones being to help kids foster the right kind of attitude to and relationship with money. Giving an allowance can help you raise grounded kids who are financially savvy, and wise savers and spenders, with a real sense of accountability.

There are many ways to gift your child with an allowance. When they’re young, it’s usually pennies and small notes in a piggy bank; as they get older they may receive a weekly or monthly allowance paid in cash. However with most kids now using their smartphones for just about everything and anything, there’s an easier way to pay your kids allowance and a more efficient way for them to keep tabs on their spending. Enter WeChat Wallet.

It doesn’t take long once you move to China to realize that WeChat is your lifeline. It’s a social networking platform that is more than just about connecting you with your friends. You can build a business, network, pay bills, coordinate events and activities, catch up on local news, read articles, make a hotel or restaurant booking, buy tickets – the list is endless, and now you can use WeChat to pay your kids!

Parents can now gift a ‘Relative Card’ using WeChat. You can set one up for mom, dad, and child, and you can create up to two WeChat Wallet cards for kids. Follow the instructions below to set up a monthly allowance card for your kids. Don’t forget to remind them that spending digital money is very easy; before you know it, it’s gone! When giving a monthly stipend to your kids, you may want to encourage them to save some, spend some, and give some (to a charity of their choice). These purposeful acts show them that there’s a particular formula to how one should handle money.

• Click on “Me” on your WeChat homepage
• Click on “WeChat Pay”
• Click on “Wallet”
• Select “Relative Cards” from the menu
• Click on “Gift a Relative Card”
• Click on the “Child” card option
• Search for the name of your kid and select
• Input the limit you would like set for your child’s monthly allowance, and send.

This is a great and easy solution for switching up the way you pay your kids their allowances or to start gifting your kids pocket money.

Photos: Pixabay

When it comes to family money matters, the kids should arguably be a part of purposeful discussions that help them to foster the right kind of attitude and relationship with money. In addition to talking openly about money, parents may wish to support this process by offering their kids an allowance. All parents want to raise modest, patient, and grounded kids who can develop into financially savvy and wise savers and spenders, but how should we approach the issue of offering our kids money?

One of the most contentious issues around the giving of pocket money to children is not only the amount that is given on a weekly or monthly basis, but whether or not this transaction should be one that’s earned. Should our kids work for their allowances? Cleaning the car, taking out the trash, cleaning their room, and washing the dishes are just some of the most common sets of chores traditionally asked of children in an effort for them to be taught financial responsibility and the value of money.

No one wants to raise a child with a sense of self-entitlement, and having your kids earn their pocket money may seemingly be the best way in which to support the cultivation of a good work ethic and a meaningful understanding of money matters. However some parents would argue, as I do, that chores are foremost an integral part of family life, and household tasks should not be seen as a transactional tool whereby kids can trade in responsibilities for compensation. Household chores should be considered core elements of a child’s contribution to the home and family.

The Zupko family have adopted this philosophy and garnered their inspiration from the manifesto laid out in author and financial columnist Ron Leiber’s The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money. This practical guide book for families is intended to provide a detailed blueprint for parents tackling family money matters related to: the Tooth Fairy, allowances, chores, charity, saving, birthdays, holidays, cell phones, and other issues that are directly related to finance. Parents are encouraged to teach and demonstrate healthy money management by having their kids take their allowance and allocate it evenly between save, spend, and share. “We let them decorate a bucket with a label for themselves so they really felt like a part of the process,” said Julia Zupko, mother of 11-year-old, Natalia and 9-year-old Josephine.

The Zupko Family

Helping our kids to differentiate between tasks we must all learn to contribute towards in a family, and the healthy management of money and expenditure, means that our kids will receive a more well-rounded philosophy and approach when it comes to domestic labor and how to spend and budget, “We are now starting to use a spreadsheet instead of physical buckets here in China because physical money is less relevant, where, in addition to using it as a credit/debit/balance system, we are also considering adding in a monthly APR so their money grows just like a real savings account and further, keeping track of the amount they would have had, had they not spent it,” says Zupko. She went on to say that there are no rules attached what her daughters can spend their allowances on, however perspective and advice is offered to support wise decisions.

The Lim family have a slightly different approach, which seems to embrace a more flexible process of offering ad hoc allowances to their 6-year-old boy, Zac, “We give pocket money irregularly, on demand and in reward”, said father of Zac, Michael Lim, “There is no set limit, if he likes the look of coins more than notes, we give him that.” When asked about how Zac’s allowance is earned I found it interesting that the Lim family’s allowance philosophy is not so much based on chores as such, but rather the triumphs and accomplishments of their little boy, “Zac receives an allowance by achieving goals and milestones, i.e. learning new vocabulary, listening to what we say, and picking up after himself when playing.”

For Lim, an allowance is a reward, so in that regard it is earned and therefore is a gesture that aims to attach meaning to the monetary gift. “We are promoting positive behaviors by rewarding them with food and toys, plus money in his piggy bank”, he said.

Although these two families are using a slightly different approach to the issue of raising kids with an allowance, the end game couldn’t have more synergy. These families are also dealing with family money matters with kids of different ages and therefore the nature of their methods will reflect the emotional, mental, and physical characteristics of their children. The Zupkos are teaching their kids fiscal responsibility, where, as is appropriate for Zac’s age, the Lims’ focus is on reinforcing the practice of positive behaviors related to fostering a good work and learning ethic.

The philosophy concerning allowances for kids may also adapt and change with time, and be built upon the unique attributes and makeup of each family. Both the Zupkos and the Lims are trying to support and encourage their kids to harness a greater sense of responsibility and a healthy attitude towards money, its worth, finiteness, and of course all the wonderful results of wealth-building.

What are often not discussed among parents and families however are the systematic elements of high and low-income households, which are directly connected to inequalities and segregation in education and housing. Some families have no choice but to raise children who will ultimately have to financially fend for themselves, and go without until they can. What lessons can be taught to these kids about money? How can parents of higher-income households balance the giving of an allowance with ensuring that their approach does not nature an attitude of entitlement?

The charity element that the Zupkos have implemented ensures that their kids are thinking about others and their needs; this could perhaps be a tool that can be used to combat the raising of prima donnas and an attitude that fails to acknowledge the importance of giving and empathy for those who do not have the same privileges. In regard to families who can’t offer physical money, lessons, praise, emotional support, and the giving of your time and energy can also be used to teach kids responsibility, accountability, and respect.

Every family is different, and we all have to do what works for our household when it comes to money matters. Below are a few reasons why giving kids an allowance can have a positive effect. However there are a plethora of other ways to teach kids about money – chocolate pennies, piggy banks and matching toy coins, trade-offs with selected items, and activity-based transactions can also be used to talk money and cultivate the right behaviors and attitudes towards giving, receiving, and the value of time and finance.

5 reasons to give kids an allowance

Teaches them how to budget

Make sure your kids are required to put a designated amount of their allowance into savings, and when spending money runs out, they will learn about healthy spending and preparing for unexpected expenses.

Helps give them a good work ethic

If you require your kids to work for their allowance, select the kind of tasks that work for you as a family and are not too connected to everyday contributions that all kids should be doing without compensation. If your kids are slightly older, you may ask that they run an errand for you, demonstrate generosity by helping out a neighbor with a chore of some sort, or learn a simple dish or snack they can prepare for the family on request.

Teaches them fiscal responsibility

Budgeting is arguably one of the most important skills we all should learn as early on as possible. It helps kids to be more responsible with their spending as they get older, and prepares them for the wider world of money management. What’s APR? How can one budget for shopping, travel, and disposable income spending? And how can one plan/save for short-term and long-term financial goals?

Helps them to understand what it takes to run a home

I had no idea how much money went into keeping my parents’ household running, and so when asking for extra pocket money never considered what expenditure was attached to keeping family life functioning. Kids need to learn how much money you spend on basic things, like food, utilities and even desirables, like toys and candy. Giving an allowance shows how far money will go, and by sharing some of the costs for things like food you can demonstrate how many allowances it would take to feed the family, so that finance is not an intangible concept.

Shows them their effort in the family is appreciated

Again, if you require your kids to earn their allowances, using the method above, you are also showing your kids how much you appreciate their contribution. Kids, particularly when in their teens, can feel like their help around the house goes unnoticed and without thanks. It’s all about balance. Yes, we should all contribute to household tasks but nonetheless, praise, thanks, and/or an allowance goes a long way in acknowledging and reinforcing the positive behaviors you would like to see more of.

Do your kids get an allowance? What’s your philosophy? Comment below!

Photos: courtesy of Julia Zupko, Michael Lim, Pixabay

Every Chinese kid knows exactly what to expect from the Spring Festival: those lucky red envelopes stuffed with crisp, clean 100 kuai bills bestowed on them by adoring relatives. However, as China’s economy booms and parents find themselves with increasingly large amounts of disposable income, more and more kids are discovering that they don’t have to wait until February to get hold of a little extra cash. Last year, Chinese parents outdid their Japanese and Korean neighbors and gave their offspring a whopping RMB 60 million in allowance. Since 2000, Chinese children’s income via allowance has doubled, and their spending has almost tripled, a recent survey by global market research company Synovate has found.

The rise in kids’ incomes can be seen as a direct result of the one child policy: China’s increasingly affluent adults are seeking to give their single children all the gifts and treats that they themselves were denied. Twenty-four percent of parents surveyed said they gave their child money whenever they requested it, and a further 26 percent said they gave their child as much money as they could afford to each month. The remaining 50 percent try to stick to giving their children a fixed amount every week, or simply purchase the desired items when their children ask for them.

Local Beijing mother Xue Feng Song doles out a weekly allowance to her 13-year-old son Xue Rong Bai. “I think it’s necessary to give my son pocket money so that he can be in contact with society. He can choose what he wants to buy and save up for things,” she says. Xue also tries to give her son lessons in smart spending. “I tell him to buy stationery for school and also some snacks and things like that. I don’t want him to be hungry when he’s out of the house.” Unlike their Western counterparts, Chinese parents don’t usually monitor what their kids spend their pocket money on. “I don’t keep track of his money, I think it’s his business,” reports Xue. “Some people also think children should do chores in exchange for money, but they are already so busy with school work I don’t think they should have to.” That doesn’t stop Rong Bai from feeling a little aggrieved, however: “I still don’t think I get enough,” he complains.

Western families living in China can encounter a number of problems associated with allowance. For instance, what seems like a reasonable amount of money back home might be unreasonably generous when converted into RMB. To deal with this, Australian mom Mandy Jensen gives her daughter Ruby (9) and son Max (7) RMB 20 and RMB 10 a week, respectively. “I know this wouldn’t seem like a lot of money in Australia, but I think it’s plenty for them here,” says Mandy. While Mom might think this is fair, Ruby and Max – just like Rong Bai – think they are getting a rough deal. “I think I should get 90 kuai because I’m 9 and Max should get 70 kuai because he’s 7,” Ruby suggests.

Ruby and Max are working on saving: So far, Ruby’s hoarded RMB 600 with the goal of buying an iPod; Max, eager as he is, has been slightly less successful, managing to squirrel away just RMB 13 thanks to an addiction to Pokemon cards. Mandy says that ideally she’d stop giving the kids an allowance as soon as they got their first part-time jobs, “but because we live in China, it’s not really possible for them to get a job at McDonald’s, so I will continue to give them an allowance.”

The question of when to end this financial arrangement with their children is also an interesting one for Chinese parents. Notorious for doting on their kids, most Chinese parents continue to give their children an allowance up until they begin their first serious, full-time job. Sixteen-year-old Han Gao started receiving pocket money when she was in first grade, and her mother Jie Chen doesn’t see a reason to put an end to this practice until Gao’s fully self-sufficient. “Children need money to be able to buy little treats for themselves. It’s natural that we give our daughter money until she can support herself. Everything is so competitive, so [kids]will need as much help as they can get.”