Otoshidama Etiquette: How to Put Money in the Envelope (New Bills, Direction, Folding, Amounts)

What is Otoshidama?

Otoshidama (お年玉) is a New Year gift of money, commonly given to children by parents, relatives, or close family friends. It’s typically presented in a small decorative envelope called a pochibukuro (ポチ袋). While rules differ from family to family, the overall tone is consistent: the gift should feel warm, festive, and thoughtfully prepared.

Why new bills matter (pinsatsu / shinsatsu)

Using crisp new bills (shinsatsu / pinsatsu) is widely seen as a sign of care—similar to giving a gift in clean wrapping. It signals that you prepared on purpose, not at the last second. If new bills aren’t available, choose the cleanest bills you have and avoid anything torn or heavily wrinkled.

Where to get crisp new bills (banks & exchange machines)

The most reliable way to prepare crisp new bills in Japan is usually through a bank counter or a bill exchange machine—but it depends on the bank, branch, and machine. Some exchange machines allow you to request new bills, while others do not. Services, limits, and fees can vary.

Because banks close for several days around New Year, many people prepare Otoshidama bills in advance (often in late December) rather than waiting until the final days of the month.

A practical note: standard cash withdrawal ATMs typically do not let you choose “new bills”. However, a freshly stocked machine may dispense cleaner bills—this is a tendency, not a guarantee.

When to give Otoshidama (timing in Japan)

Otoshidama is typically given during Japan’s New Year period, most commonly on January 1–3. Many families hand it to children when they meet in person for New Year visits. If you won’t see the child during those days, giving it at the next New Year gathering is generally fine.

For a broader overview of Otoshidama customs, see: Japanese Otoshidama Guide.

Which way should the bill face?

A simple “safe” rule:

• Insert the bill so the portrait side faces up.
• When the envelope is opened, the portrait should be right-side up (not upside down).

This small detail makes the gift feel intentional and tidy.

Folding rules (neat and practical)

Many pochibukuro are small, so folding is normal. The goal is not a special “ritual fold,” but a clean, flat result.

• If the envelope is tall enough, you may not need to fold.
• If folding is needed, a half-fold is common.
• If the envelope is very small, fold into thirds so the bill sits flat.

Avoid over-folding or forcing the bill into a too-small envelope. If it bulges, choose a larger pochibukuro.

How to insert the money neatly (step-by-step)

1. Flatten the bill (avoid curled corners).
2. Set the direction (portrait side up; right-side up when opened).
3. Fold neatly only as much as needed; press along the fold line for a clean edge.
4. Slide it in slowly so the corners don’t catch and crumple.
5. Close the envelope gently (tape is usually unnecessary unless the design suggests it).

Choosing the envelope (pochibukuro)

Choose designs that match the recipient and the setting:

• Kids: cute animals, zodiac motifs, playful illustrations
• Teens: simpler, stylish patterns
• More formal family settings: traditional motifs (pine/bamboo/plum, cranes, etc.)

The goal is friendly and festive—not corporate. When in doubt, keep it simple and tasteful.

Where to buy pochibukuro (envelopes)

Pochibukuro are easy to find in Japan during the year-end and New Year season. Common places include:

• Stationery stores (often with the widest selection)
• 100-yen shops (budget-friendly, many seasonal designs)
• Convenience stores and supermarkets (seasonal displays in late December)
• Department stores and gift shops (more refined or traditional styles)
• Online shops (useful if you want specific designs or need them early)

If you’re buying last-minute, selection may be limited—so it helps to pick up pochibukuro when you see them in late December.

Writing names (where and what to write)

Many families write a short label like 「お年玉」 on the front. Adding the child’s name is helpful when you’re giving multiple envelopes. If you’re unsure, keep it minimal and legible.

For broader everyday etiquette in Japan, see: Etiquette Basics.

How much to give (common ranges by age)

Otoshidama amounts vary widely by family, region, and relationship. The table below shows common ranges as a general guideline—not a strict rule. If your family already has a custom, follow that first.

In Japan, the cleanliness of the bill, the envelope choice, and the way it’s given often leave a stronger impression than the exact number—especially for younger children.

Common mistakes + quick checklist

• Using visibly dirty, torn, or heavily wrinkled bills
• Putting the bill in upside down
• Over-folding so the bill becomes crumpled
• Choosing an envelope that’s too small, causing a bulge

Quick checklist: clean/new bill → correct direction → neat fold → sits flat → name is clear (optional)

Trivia

Otoshidama is often explained as a New Year custom connected to the idea of welcoming annual blessings and sharing them with the young. That’s one reason the presentation—clean bills and a festive envelope—can matter as much as the amount itself.

FAQ

Do I have to use new bills?

New bills are preferred when available, but they aren’t mandatory. If you can’t get them, a clean bill presented neatly is generally considered polite.

Can I get new bills from an ATM?

Most standard ATMs don’t let you request “new bills.” Some banks offer new-bill exchange at counters or via exchange machines depending on the branch. A freshly stocked ATM may dispense cleaner bills, but it’s not guaranteed.

Is there a universal “correct” amount?

No. Amounts vary widely by household and relationship. Use common ranges as a guideline, and follow family customs when they exist.

Do adults receive Otoshidama?

Usually it’s for children, but practices differ. Some families continue through university; others stop earlier.