The actual significance of this tradition is mainly on the red packet. The money that comes in it is secondary, and an add on bonus for the recipient of the Ang Bao.
The meaning behind giving of red packets during Chinese New Year is a way for married working adults to share their wealth and blessings with the young ones.
On top of that, red colour in Chinese tradition signifies:
While the money in the red packet signifies the gift of fortune and luck.
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