Otoshidama: The New Year Money Envelope

Every January, children across Japan receive small decorated envelopes, and a few simple customs decide who gives, how much and how.

Published October 18, 2026 at 11:53 PM JST | By Tokyo Paul

Quick answer: Otoshidama is the money traditionally given to children in Japan at New Year, placed in a small decorated envelope called pochibukuro. Parents, grandparents, aunts and uncles give it, and adults do not give it to bosses or elders. The amount usually rises with the child's age, and new bills are preferred.

What otoshidama is

Otoshidama is a gift of money presented to children during the New Year holidays, usually between 1 January and the first few days of the month. The money is placed in a small envelope with festive designs. Children often keep it for toys, books and savings, and for many it is one of the highlights of the holiday. The word is written with characters that mean year and jewel or spirit.

The older meaning is linked to toshigami, the deity who is believed to visit homes at the start of the year, and the offerings associated with that visit. Today the custom is a family gift with a gentle seasonal meaning. The tradition fits into the wider New Year, or Oshogatsu, which also includes osechi food, visits to shrines and cards sent to friends. Otoshidama is one of the parts that children look forward to most, and it brings relatives together in a cheerful way.

Origins in rice cakes and offerings

Historically, the gift was not money. Families offered round mochi rice cakes to the visiting New Year deity, and afterward the mochi was shared among family members. The idea was that the spirit of the year was present in the cake, so eating it brought health and good fortune. Over time, in the Edo period, it became common for masters to give gifts to apprentices and for parents to give mochi or small items to children.

When money economy grew, giving coins or bills replaced the older offering, and the name stayed the same. Because the custom changed gradually, regional variations remain, and some families still give a small gift of food or a toy beside the money. This evolution explains why the New Year is associated with round shapes and sharing. Kagami mochi, the stacked rice cakes set out in homes, still carries the older meaning. Many families break and eat it in a ritual called kagami biraki later in January.

Who gives and who receives

The usual pattern is that adults give to children in the family. Parents, grandparents, aunts, uncles and sometimes older cousins give to younger relatives. Friends of the family may give to children when they visit. Adults do not give otoshidama to their parents or superiors, since the custom flows from older to younger. For workplace gifts, a different practice applies. A manager does not give otoshidama to employees, and colleagues do not exchange it.

If you want to send a New Year greeting to coworkers, a card or a small snack is more suitable. Children may keep the money, or parents may manage it for them. Some families let children keep a small amount and place the rest into a bank account. In many homes, the child writes a thank-you note or says thanks politely, reflecting good manners.

How much to give

The amount depends on family habits, the child's age, and the generation giving the gift. As a rough, common pattern, younger children receive smaller amounts and older children receive more, and relatives often adjust to what others in the family give. Because there is no official rule, it helps to ask a relative or friend what is typical in your circle. Many people avoid amounts that include the numbers four and nine, since they sound like words for death and suffering.

Neat, round amounts are common, and a single bill is often easier to hand over gracefully than a pile of small ones. Giving the same amount to cousins of the same age is considered fair and tidy. Keep the amount comfortable for your budget. The thought and the presentation matter more than a large sum, and families in different regions and circumstances have different norms. If you are unsure, being modest and kind is always appropriate.

The envelope and the bills

Otoshidama envelopes are called pochibukuro. They are small, often folded, and sold in packs at stationery shops, convenience stores and 100-yen shops. Designs include seasonal motifs such as the zodiac animal of the year, plum blossoms, cranes and popular characters. New, crisp bills are preferred, since they feel fresh for the new year. Many banks and ATMs are busy at the end of December, and people sometimes visit a bank to obtain unfolded bills.

If you cannot get new ones, smooth, tidy bills are fine. Do not fold bills many times. Write the child's name on the front and your name on the back if you like. A short message such as "Happy New Year" is optional. Present the envelope with both hands, and say a short greeting, such as akemashite omedeto gozaimasu. Stationery shops sell envelopes in sets, and the cheerful designs change each year with the zodiac animal.

Etiquette for visitors and newcomers

If you are invited to a Japanese family's home at New Year with children, you do not need to bring otoshidama unless you want to. A small gift for the family, such as sweets or fruit, is more common. If you are close to the family and want to give, ask a friend about the right amount. Children typically bow and thank you when they receive it, and they may not open it in front of you.

This is a polite habit, and it is normal for parents to hold the envelopes afterward. Avoid asking how much is inside. For foreign guests used to other customs, remember that Chinese red envelopes, Korean sebae-don and other traditions have similar features but differ in details. In Japan, the emphasis is on children, and amounts are modest and rather private.

Modern changes

Cash is still the standard, but digital versions have appeared. Some payment apps allow users to send a gift to family members, and gift cards are used in some households. Relatives who live far away may send a bank transfer or mail the envelope with a card. Children and parents sometimes use the gift as an occasion to talk about saving and spending.

Parents can help a child choose a goal, such as a bike or a book, and set aside part of the money. This keeps the custom educational and joyful. Shops also hold New Year sales and lucky bags, called fukubukuro, around the same time, which gives children a chance to use their otoshidama. The first days of January are a lively time in shopping districts, so plan your trips with a bit of patience.

Frequently Asked Questions

How old do children get otoshidama?

Usually from toddlers until they finish high school or begin university or work, though families vary. Some stop at a certain age, while others continue through college. There is no official rule, so it is best to follow your own family's habit or ask a relative what is typical.

Should otoshidama be given to a boss?

No. Otoshidama flows from older to younger and is meant for children. For a boss or colleagues, send a New Year card or bring a small gift of food when appropriate. Cash gifts in work settings are generally avoided, and a simple greeting is warmly received.

What is written on a pochibukuro?

Many people write the child's name on the front and their own name on the back. A short message is optional, and some envelopes already have printed greetings. Keep the writing simple and neat, and hand the envelope over with both hands and a New Year greeting.

Keep Exploring

More guides from Tokyo Paul: Goshugi: Wedding Gift Money Etiquette in Japan, Shogatsu: Japan's New Year Customs and Koden: Funeral Etiquette and Condolence Money.