Why Do People Give Red Envelopes on Lunar New Year?

The Lunar New Year has plenty of traditions—such as cleaning the house, presenting ritual offerings to ancestors and enjoying symbolic foods—to encourage prosperity in the year ahead. Many Asian and Asian American children look forward to one particular practice. In China and other parts of Asia, parents, grandparents, aunts, uncles and sometimes close friends or neighbors give children red envelopes filled with money—“hóngbāo” in Mandarin, and “lai see” in Cantonese—to celebrate the holiday.

But this custom is about more than carefully wrapped currency. “The act of giving and receiving red envelopes transcends a mere financial transaction,” Sarah Coleman writes in her book Lunar New Year. “It is a carefully choreographed dance of respect, affection and well-wishing.”

Giving hóngbāo is considered a gesture of goodwill that conveys care and support for younger generations. In return, children pay respects to the eldest members of the family and their ancestors.

The envelopes are red because it’s the most auspicious color, associated with good luck and happiness. They are traditionally decorated with gold letters and Chinese symbols of luck, like the dragon, the phoenix and the Chinese zodiac animal of that year.

The red envelopes don’t contain a set amount of money, but there is symbolism in their value. For example, even numbers are considered lucky—with the exception of four, as its pronunciation is similar to the word “death.” Amounts containing six (indicating smooth progress) and eight (a token of prosperity) are thought to bring good fortune. No matter the value, it’s given in crisp, clean bills—not worn, wrinkled or dirty banknotes. Digital red envelopes have also become increasingly common.

The practice of gifting red envelopes for the Lunar New Year originated in China, but it’s difficult to pinpoint exactly when and why it started. According to a 2025 article written by East Asian studies scholar Ming Gao, the idea behind hóngbāo has its roots in the Han dynasty (206 B.C.–A.D. 220) when people wore amulet-like items in the shapes of coins. Later, during the Tang dynasty (618–907), coins were scattered and collected as part of springtime celebrations.

Giving money to children for special occasions and celebrations began during the Song and Yuan dynasties (960–1279 and 1279–1368). Then, during the Ming and Qing dynasties (1368–1644 and 1644–1912), people gave children money threaded on red string.

Hóngbāo as we know it today began in the early 20th century, when Chinese elders started giving children money wrapped in red paper for the Lunar New Year. It was thought to ward off evil spirits.

Although red envelopes are most closely associated with the Lunar New Year, they are also given on other special occasions like birthdays and weddings.

Although the Lunar New Year tradition of red envelopes is most prevalent in Chinese culture, it also takes place in Taiwan (hóngbāo), Vietnam (li xi), Cambodia (ang pav or tae ea) and the Philippines (ang pao). Other countries have similar practicea; in Japan, otoshidama is gifted in colorful envelopes, whereas South Korean sebaetdon comes in white or decorated envelopes. The tradition has continued in many Asian American communities and families.

Although kids are the most common recipients, red envelopes aren’t restricted to youth. In some cases, unmarried adults receive red envelopes during Lunar New Year known as ya sui qian, which translates to “suppressing age money.” This practice is thought to ward off misfortune as well as slow aging. Coleman also writes that employers can gift hóngbāo to employees, and some people give red envelopes to service providers like security guards and maids.