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Q: Giving money to kids at New Year, why?
From what I saw when i spent Chinese new year with my Chinese girlfriend a few months ago, when we almost just met, they like to give money to kids. It was really a fun moment, mostly because she wanted me to make a joke to her family saying i agreed to marry her. The thing is, i'm really bad at telling jokes, so i had to resist cackling and snorting all the time. She got the guts to make those jokes i tell you!
But what I was wondering was : why it would be almost mandatory to give money to children. Is it related to the importance of acquiring currency and gain financial wealth? Do they go as far as training them at such young age?
you can try refuse giving money for kid, see what would happen 
It is an age old tradition, but like many traditions here, it has changed. Maybe nowadays it is only about getting money and spending it on candy and other material things, in the past the children could not spend the money for at least one year and they would hang the red packets above there bedroom doors.
I went to a Chinese friend's house during last year's Spring Festival and was shocked at how closely the adults monitored how much each person gives to the children. I realised it had more to do with family politics than a selfless act of kindness. One of the relatives "only" gave the kid 100 RMB, which became one of the main bitching topics later on among some of the elders: "Can you believe that xxx only gave 100 RMB even though she's got that job now..." bla bla bla...
It disturbed me and angered me at the same time...
No difference with Christmas presents in your home country.
I don't know for you, Martin, but back in 'Merica, we don't give cash, we give Wii games, a PS3 or those little toys they can have fun with. Giving money means you're moar like a lazy guy, and don't deserve to be invited to parties...
