Tooth Fairy Money: a Tooth Fairy Tutorial

Tooth Fairy, Are You Ready?

That first wiggly tooth...a rite of passage we are never quite ready for.  Suddenly, our chubby-cheeked toddler is transforming into a coltish, gap-toothed kid right before our very eyes.  Also suddenly, we have to add “Tooth Fairy” to the very long job description we are expected to fill as parents. 

How do we prepare for this childhood milestone in a way that makes the most out of this money moment?  

“Kids lose their first tooth around age six, and most kids will lose all 20 of their baby teeth by the time they are twelve,” says Dr. Jen Fountain, a top pediatric dentist in Manhattan.  

How are there so many teeth in those little mouths?  That’s a lot of Tooth Fairy visits for parents to plan for. 

How Much Money Does the Tooth Fairy Give?

Let’s do some math.  The average parent gives just under $5 for their child’s first lost tooth...and there are still nineteen teeth to go.  That is nearly $100 in cash doled out over a few short years!  What’s more, many parents also have multiple tooth-losing kids in their households at once.    

While we may have heard stories about kids who found $100 under their pillow the first time they lost a tooth, the BT Moms take a scarce and steady approach to the Tooth Fairy. 

We start small, give money that is hard to come by (more on that below) and try to be consistent with what we give.  Sure, we might leave a little more for that very first tooth, but we believe good money habits should come from consistently handling money earned through a weekly allowance instead of unexpected cash bonuses every time a baby tooth falls out.  

For Tooth Fairies on a Smaller Budget

When it comes to making a big impression on a small Tooth Fairy budget, the key is novelty (and glitter...lots of glitter). 

The BT Dozen are thrilled to find a shiny silver dollar under their pillow in the morning (it looks like a rare piece of treasure, for a tiny fraction of the price!) or even better, spot a two-dollar bill on their bedside table in the early morning hours.  (Does anyone else’s kid wake up with the sun after they’ve lost a tooth?!) 

Now is a good time to show our kids that it’s not every day you see a silver dollar or a two-dollar bill - these denominations are scarce and therefore more exciting. 

And a Financial Literacy Teaching Moment is Born

More importantly, what is your little to do with their new-found earnings?  While we encourage our kids to always divide their allowance dollars between Spend, Save & Give, the BT Moms let our littles use their Tooth Fairy money at their own discretion. 

From a Pokémon card to a contribution to a savings account, we allow our proud, toothless kids decide on this milestone moment.  As kids grow, this is a good time to let them be empowered with their money choices, all while the stakes are low.

Sometimes other family members and friends want to celebrate a kiddo’s newly-lost tooth.  Apps like Early Bird allow little investors to send alerts to their family and friends when they lose a tooth and perhaps get a small contribution from grandma to grow their tiny nest egg.  Talk about bringing the Tooth Fairy into the 21st century.

To Conclude, a Tooth Fairy Warning 

“I notice that kids talk a lot about what the tooth fairy has brought them,” says Dr. Fountain,  “so parents should keep that in mind when deciding on the amount they give.”  

How should parents navigate this dental dilemma when the question comes up after a friend receives a higher sum?  While there is no right answer, the BT Moms might reply, “Wow! Jack has a generous tooth fairy.  That must have been a valuable tooth!  Fortunately your tooth fairy brings little treasures like a shiny silver dollar, which is also very valuable and rare.”  

An important caveat, if you have kids who are at a tooth-losing age, it’s time to start allowance.  While the tooth fairy “bonuses” are a fun right of passage, allowance is the most powerful tool for making kids, both young and old, financially fit.

Pro Tip:  Next time you hit the bank on your errands about town, grab a few silver dollars or two-dollar bills from the teller so you are stocked and ready when one of those wiggly teeth pops out. 

“Now that you have a two-dollar bill, do you want to spend it or hang on to it since they are hard to come by?”