The claim that lucky money is a child's personal property and it is illegal for parents to confiscate it or use for their own purposes is naive, as the money is provided by adults who are the real owners, says an article on youth.cn. Excerpts:

One thing should be made clear: Lucky money is not actually a gift for children but an exchange acknowledging the friendly relations between adults. Generally, it is all about reciprocity: If someone's child is given money, they will present money to the giver's child in return. To some extent, there is a competitive trend to see who gives the most lucky money, which is a terribly bad habit.

More importantly, it might harm the development of children to allow them to get something for nothing without any effort. Children's growth needs delicate care. Rewards should be reserved for progress or good performance. The giving of lucky money without any effort or achievement on the part of the child is a bad incentive that misleads children .

It is good to cultivate a child's understanding of financial concepts as early as possible, but both parents and children should be aware the money is provided by adults who are the real owners.

We cannot say no to the back-and-forth of human relations, but we can at least guarantee such social intercourse will not do any harm to children. Perhaps the perception of some children that they are born with property and money is also the reason for the emergence of elderly-devouring young adults.

(China Daily 02/18/2013 page9)