On the occasion of National Tooth Fairy Day (yes, there is such a thing), I received not one but two studies showing that the tiny sprite is taking a bigger bite out of parents’ wallets.
An annual survey by Visa showed that children received an average of $3.70 per lost tooth last year -- an increase of 23% over the $3 per tooth left in 2012. Meanwhile, the Original Tooth Fairy Poll, by Delta Dental Plans Association, a provider of dental benefits programs, found that the average gift climbed to $3.50 last year, up from $2.42 in 2012 -- a 45% gain that even beat last year’s stellar stock market performance, as Delta Dental points out.
Aside from satisfying parents’ curiosity, each poll has an ulterior motive. In Visa’s case, “parents should take this opportunity to talk about saving and smart money habits with their kids, and have the same talk with a perhaps overgenerous tooth fairy,” says Nat Sillin, Visa’s head of U.S. financial education. And Delta Dental says the fairy’s visits present an opportunity for parents to discuss good oral hygiene with their children.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How much to give. Why such an inflated cost per tooth? Perhaps parents are feeling flush or they’re trying to keep up with the Jones kids. Or maybe they just haven’t thought this through. I’m reminded of an episode of Modern Family in which Mitchell accidentally slipped a big bill ($100, if I remember correctly) under daughter Lily’s pillow because he couldn’t see in the dark. He and partner Cam spent the rest of the show trying to cajole Lily into giving it back.
It seems as if a lot of other parents are similarly in the dark about how much to give. Visa even offers a free tooth fairy calculator -- as an app in the Apple Store and on Facebook -- that makes no recommendations but tells you how much the tooth fairy is leaving in households comparable to yours.
Don’t go overboard. You won’t need a calculator if you use common sense. One reason the tooth fairy appears to be so generous is that a relatively small number of over-the-top gifts are pushing up the average. In the Delta Dental survey, 28% of kids received $5 or more for each lost tooth; in the Visa survey, 6% of those interviewed said the tooth fairy left $20 or more -- and 2% reported $50. On average, parents who were age 18 to 24 were most generous, leaving an average of almost $5 per tooth.
But in the Delta Dental survey, the most common amount was $1 (42% of respondents reported that amount); in the Visa survey, 36% said a thrifty tooth fairy left $1 or less. That makes sense to me. The point isn’t to enrich your child, but to continue a popular custom (the tooth fairy visits about 90% of homes with children, say the two studies).
Make it special. A little creativity is also welcome. One of my Kiplinger colleagues gives his 7-year-old a dollar bill per tooth because it’s convenient -- and to ensure that jingling coins won’t wake up his light-sleeping son, who also gets a certificate describing the lost tooth and showing the date. To make it special, you could give a dollar coin or a crisp new bill. On my shelf at work I have a little silver box in which children can store their lost teeth for posterity.
Over the years of writing this column, I’ve collected many tales from parents about how the tooth fairy operates. One of my favorites comes from a mother whose daughter’s name is Elizabeth. Each time she loses a tooth, she receives a British coin with the picture of Queen Elizabeth on it. Says her mother, “The value of the coin is not important to her, but the idea of a coin with her name on it makes her feel special.”
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
December Fed Meeting: Live Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
This Is Why Investors Shouldn't Romanticize BitcoinInvestors should treat bitcoin as the high-risk asset it is. A look at the data indicates a small portfolio allocation for most investors would be the safest.
-
Smart Strategies for Paying Your Child an AllowanceBy giving your kids money to spend and save, you’ll help them sharpen their financial skills at an early age.
-
How to Motivate Kids to Savepersonal finance It's not easy teaching your child to save. Here are some ways readers have incentivized their kids to keep track of their finances.
-
Lessons for Kids From the Crisissavings One of the greatest opportunities presented by the pandemic is to give children an appreciation for the workings of the economy.
-
Why Financial Education Workscollege Money skills learned young will pay off in the long run.
-
The Tooth Fairy Is Leaving Less Under Pillows These Dayssavings The average amount that the Tooth Fairy gives kids is down 10% from last year.
-
The Value Test: 300 Colleges That Pass
College Rankings All the schools on our list, from 1 to 300, are best values.
-
6 Ways to Get Your Kids to Do Chores Without Paying Themspending Kids shouldn't be paid for doing routine tasks, but for doing extra jobs that parents define as above and beyond.
-
Save $1 for College, Cut $2 in Debt
college Paying for college doesn't mean you have to take out thousands in student loans.
