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Otoshidama: a New Year gift in a small envelope

Otoshidama usually means money that adults give children at the Japanese New Year. A small envelope turns the cash into a seasonal gift exchanged with greetings and wishes for growth. Earlier uses of the word were broader, encompassing New Year presents, rice cakes and other objects as well as money.

A small gift envelope

Cash in a small envelope is the familiar modern form.

Historically, the name covered a wider range of New Year gifts.

Accounts of its origins differ.

01

A seasonal gift between generations

Givers and recipients

Parents, grandparents and other relatives commonly give otoshidama to children. Its setting distinguishes it from ordinary pocket money: it accompanies New Year encounters and wishes for the child’s growth. Families make their own arrangements about recipients, ages and amounts.

Giving the cash a form

An otoshidama-bukuro holds the money; a small pochi-bukuro is often used. The National Gallery of Victoria describes the latter as a decorated envelope for a small gift, such as money. Japan’s Currency Museum also connects folded notes, small envelopes and otoshidama.

Woodblock-printed gift envelopes, 1930s; National Gallery of Victoria

National Gallery of Victoria

One gift and a total received

There is no nationally fixed payment. The recipient’s age, relationship to the giver and household arrangements can influence the amount.

02

A name that once covered more

New Year gifts in the Muromachi period

Chiba City Central Library’s reference account describes New Year gift-giving as already flourishing during the Muromachi period. Otoshidama once meant seasonal gifts more generally. Early modern presents could include fans or pills associated with a giver’s occupation, while rice cakes were widespread.

Rice cakes and the year deity

The Shōwakan library presents a folkloric account connecting round rice cakes offered to a deity, their distribution and the blessings of the year deity. Another proposed etymology relates the word to a gift of the year. These explanations place otoshidama within seasonal sharing without establishing one undisputed origin.

Money and objects in the Edo period

The annual-custom account reproduced by Shōwakan describes Edo-period merchants giving young servants money in place of rice cakes. Kites, spinning tops and battledores could also be gifts. Cash therefore belonged to a wider gift tradition well before the postwar period.

The present focus on children’s money

Folklorist Shintani Naoki places the widespread use of cash after the war. The Currency Museum’s 2025 catalogue associates the present cash-giving custom with the high-growth era beginning in the late 1950s. Earlier cash gifts to young servants therefore belong to a longer history, while today’s usual meaning centres on New Year money from adults to children.

Earlier, broader New Year gifts

Rice cakes
Rice cakes
Toys such as kites
Toys such as kites
Toys such as tops
Toys such as tops

Gifts varied with context; Edo merchants also gave cash to young servants.

The usual modern meaning

A small money envelope

Adults → children: New Year money in a small envelope

The usual contents and recipients changed; the objects are not a sequence of replacements.

Check your understanding

How does otoshidama differ from ordinary pocket money?

It belongs to New Year greetings and seasonal gift-giving.

Was it always cash?

The older gift tradition also included rice cakes, fans, toys and other objects.

Is the rice-cake explanation a single proved origin?

It is one folkloric account among differing explanations.

What could historical New Year gifts include besides money?

The accounts describe rice cakes, fans and toys such as kites, spinning tops and battledores, with different periods and gift relationships.

Sources and images