Otoshidama: New Year’s Money for Kids in Japan

Learn about one of the most delightful (and eagerly anticipated) New Year’s traditions in Japan.

Receiving otoshidama (New Year’s pocket money) is a fun and culturally significant practice that kids eagerly look forward to every year in Japan. It’s also an excellent opportunity to teach children about money, savings and Japanese New Year’s traditions.

What is Otoshidama?

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Otoshidama is the celebratory money given to children during the New Year’s holiday, typically by parents, grandparents, relatives or family friends. It is a way of wishing good fortune and prosperity in the coming year. The custom dates back hundreds of years and symbolizes the passing of good luck and blessings to children.

Otoshidama History

Originally, otoshidama wasn’t a gift of money—it was mochi (rice cakes)! Mochi were considered symbols of the soul or vitality for the new year. Families believed that the Toshigami-sama (New Year’s God) would share energy with them at the start of the year, giving them the strength and good fortune to carry through the year ahead. The mochi, which represented this divine power, was divided among family members.

By the Edo period, people started giving other items, like gifts or money. By the 1960s, as Japan’s economy grew, giving money became the norm and otoshidama became a tradition mostly for children.

How Much Money Do Kids Typically Receive?

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The amount of money given to children as otoshidama can vary widely depending on the family, the child’s age and their relationship to the giver.

Here’s a general guideline for parents (however, you can ultimately decide the most appropriate amount for your family):

• Younger children (under 6): From ¥500 to ¥1,000
• Elementary school-aged children (6–12): ¥1,000 to ¥5,000
• Older children (13+ years): ¥5,000 to ¥10,000+

While otoshidama is often given in cash, it’s important to note that the amount is just symbolic. The emphasis is on the gesture and the blessing of good fortune, not the financial value.

When To Give It

Otoshidama is often gifted during the first few days of the New Year (from Hatsumode, the first shrine visit, to January 3) but can also continue throughout the month of January.

How Is Otoshidama Presented?

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Otoshidama is traditionally given in a special envelope called お年玉袋 (otoshidama-bukuro) or ポチ袋 (pochi-bukuro). These envelopes are typically beautifully decorated with auspicious designs, such as cranes, tortoises or kimonos, symbolizing good health and long life. Some Japanese people write the name of the recipient on the front of the envelope and their own name on the back but this is optional.

Envelopes in various designs are available in most general stores, such as 100-yen shops, supermarkets and variety shops around Japan. They are often sold in sets for use during the New Year holiday period.

When giving otoshidama, it is customary for the giver to hand over the envelope personally with a smile and a few well-wishing words for the child’s future success and happiness. If your child receives an envelope from others, it’s best to teach them not to open it immediately; it’s customary for children to wait until later to open it.

Digital Otoshidama

In today’s digital world, gift cards are sometimes given instead of cash. Various cashless services, such as PayPay, also offer cashless money transfer methods with an otoshidama design.

Otoshidama Etiquette

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When it comes to giving otoshidama, there are a few things you should know to avoid any awkward situations. Here are some key points to keep in mind:

Don’t give otoshidama to your boss’s children.

Although otoshidama is traditionally given from elders to younger people, with the hierarchy of your boss being above you, giving your boss’s kids money is considered impolite. If you really want to give something, it’s better to offer a small gift like a toy or some stationery.

Don’t give otoshidama to your parents, parents-in-law or elders.

Similarly, it’s considered disrespectful to give your parents an otoshidama. Instead, you can give them an o-nenga—a New Year’s gift that represents gratitude for the continued support during the previous year and a greeting to the new year.

Don’t give money unwrapped.

Money should always be wrapped when given—never hand it over bare—even if it is for your own kids. If you’re in desperate need of an envelope but can’t find one, just wrap the money in a clean piece of paper (a napkin or even tissue paper works fine). Just make sure to apologize for the informality as you gift it.

Don’t give crumped or damaged money.

Money is money, but it is important to prepare it in good condition before you give it to someone as a gift. It’s best to prepare clean bills and ¥500 coins in the amount needed for each child. This custom of giving “clean” money for celebratory gifts is a common courtesy in Japan—like at Japanese weddings. So, for parents, it’s best to lead by example. Consider giving your kids getting crisp notes and shiny coins as a learning experience!

Don’t give inauspicious amounts.

While it’s less common these days, amounts with numbers like fours and nines should be avoided. In Japan, these numbers are associated with death and suffering. For example, giving gifts with amounts like ¥400 or ¥4,000, or ¥900 or ¥9,000, may be considered bad luck.

Don’t give otoshidama to mourning children.

Due to the celebratory aspect of otoshidama, it’s considered bad manners to give otoshidama to children who are mourning family members or people they were very close with. If you really want to give something, change the wording to something like “pocket money” instead, and refrain from using a decorated envelope.

What Can Kids Do with Otoshidama?

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For many children in Japan, receiving otoshidama is an exciting moment, but the next step is often even more important—deciding what to do with it!

Here are some typical ways that children handle their otoshidama:

• Saving: It’s always a great idea to encourage your children to save a portion of their otoshidama for the future. It’s a great opportunity to teach kids about managing money and budgeting, even at a young age.
• Spending: Some children may use their otoshidama to buy things they’ve wanted over the year, like toys, stationery or games. This is also a great opportunity for your kids to practice making choices and budgeting their new money.
• Donating: Occasionally, children may choose to donate a small portion of their otoshidama to charity. Or they might use it to make wishes at shrines and temples during Hatsumode, especially if you guide them in doing so.

Do Adults Get Otoshidama?

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Some adults may be excited to hear that otoshidama is not nessesarily limited to children in Japan. Here are a few specific cases where otoshidama might be given to adults:

Unmarried Young Adults

In families where young adults have not yet moved out or are still financially dependent, grandparents or older relatives may continue to give otoshidama.

Older Relatives Offering Blessings

Sometimes, older relatives give otoshidama to young adults as a gesture of good fortune, even if the young person is financially independent or employed. This practice is less about financial support and more about wishing prosperity and success for the coming year.

Company Offerings

At some lucky companies, bosses and managers may provide small gifts or vouchers to employees during the company 新年会 (shinnenkai; “New Year’s party”). It’s also not uncommon for some Japanese bosses to privately hand otoshidama in cash form to their subordinates, as a sort of year-end bonus, especially at locally owned establishments.

Do you plan to give otoshidama money to your kids this New Year’s in Japan?

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