The Chinese New Year brings ancient celebrations and customs to communities across Canada. One family tradition is for parents to give their children a gift of paper money in a red envelope — red being the traditional colour of luck. Even if you don’t celebrate Chinese New Year, the holiday is an opportunity to discuss different cultures’ attitudes toward money with your children. These cultural differences can teach us (and our children) a lot about managing our own funds.
Needs versus wants
According to a 2008 global study by Synovate Research, respondents in India, Bulgaria, South Africa, Indonesia, Germany and Italy were the most likely to define financial success as providing the basics of food and shelter for their families (as opposed to affording luxuries or owning investments).
Bring it home: Discuss what financial success means to your children and help them distinguish between basic “needs” and “wants.”
Credit crunch
Using credit cards for everyday purchases is common in North America, as well as Australia, South Korea, Japan and the United Kingdom. In other countries, like China, credit cards are used to buy big-ticket items only. And since Muslims who follow Sharia law don't do business with companies that charge interest, special credit cards are found in the Middle East, Persian Gulf and Southeast Asia.
Bring it home: Ensure your child understands that using a credit card doesn’t equal free. Older children can grasp how interest piles up on unpaid balances.
Comparison shopping
“Haggling” or bartering is customary in Asia, the Middle East, Africa, Mexico, Central and South America and some parts of Europe. Sellers in these countries – especially at local markets – expect you to negotiate for a better price.
Bring it home: Introduce your children to the concept of finding the best price by comparison shopping with them online and at the mall, and waiting for upcoming sales before paying full price.
Charitable giving
Giving is big around the world. According to the World Giving Index 2010, 20% of the world’s population has volunteered time, 30% have given money to charity, and 45% have helped a stranger. Topping their list of giving countries is Australia and New Zealand.
Bring it home: From putting change in a collection box to participating in a charity walk, there’s a lot of ways to show your children how rewarding giving can be.
Expand the money conversation
Times have changed — and so have our money habits. A great way to expand your child’s knowledge about money management is to engage grandparents and older relatives in a conversation about how things were in the “old country” -- or in Canada in earlier times – and how they’re different here now.
