Giving Hongbao (Red packets or Red envelopes) during Chinese New Year is another tradition. A Red packet is simply a red envelope with money in it which symbolizes luck and wealth.

Red packets are typically handed out to younger generations by their parents, grandparents, relatives, close neighbors and friends. Money given like this may not be refused and the pretty envelope makes the present seem less vulgar.

The immediate family give presents to children on New Year's Eve. This is called Ya Sui Qian, meaning "suppressing age money," which is supposed to stop children from getting older.

This comes from the belief that everyone becomes one year older on New Year's Day. Red is the lucky color and will bring good luck to the person receiving the present.