Lucky money — those red envelopes filled with cash that appear every Chinese New Year — is one of those traditions that looks simple but comes with a surprising amount of meaning. I’ve gotten it as a kid and given it as an adult, and trust me, the rules matter more than you think. In this guide, I’ll break down what lucky money really represents, how much to actually put inside, and the etiquette that keeps everyone happy.

What Is Lucky Money?

Lucky money is usually called hongbao in Mandarin or ang pao in Hokkien. It’s cash placed in a red envelope, given during Lunar New Year, birthdays, and other big celebrations. The red color is key — in Chinese culture, red symbolizes energy, happiness, and good luck. The money itself is more of a symbol than a payment. You’re not buying anything; you’re passing on good fortune and positive energy to the person receiving it.

Why Do We Give Lucky Money?

The tradition goes back centuries. Legends say there was a monster or demon called Sui that would appear on New Year’s Eve and pat sleeping children on the head, giving them fevers. Parents started putting coins in red packets under their kids’ pillows to scare the demon away. The red envelopes plus the shiny coins created enough “noise” and light to protect the children. That’s why we still call it ya sui qian — money that presses down the evil spirit. So when you hand over lucky money, you’re really saying, “I want you safe and protected this year.”