How Much Money to Give on Diwali

Why Diwali money ends in 1

Many families add 1 to a round number: $11 instead of $10, $51 instead of $50, $101 instead of $100. This extra amount is often called shagun. A round number is seen as an ending, while the extra 1 represents a new beginning, continuity and growth. It's a blessing that the relationship and good fortune will keep going.

In India, people often attach a one-rupee coin to an envelope for the same reason. Abroad, adding $1 to the amount does the same job.

How much to give: typical amounts

These are common ranges in US dollars for families celebrating abroad. Your family's own habits matter more than any guide.

• Children of friends or neighbors you visit: $11 to $21.
• Nieces, nephews and grandchildren: $21 to $51, sometimes more from grandparents.
• Your own children: whatever is normal in your family. Many give new clothes as the main gift and money as an extra.
• A newly married couple's first Diwali: often more, like $51 to $101 or above, from close family.
• Siblings on Bhai Dooj: often $21 to $101. See Bhai Dooj gift ideas.

If several relatives give to the same children, it's common for amounts to be similar. Ask a parent or elder what's usual in your family.

Who gives money to whom

• Elders give to younger people. Parents, grandparents, aunts and uncles give to children and younger relatives.
• Younger people usually don't give money to elders. They show respect in other ways, like touching an elder's feet for a blessing in many families, or giving a gift.
• Brothers often give money to sisters on Bhai Dooj, and today many sisters give back too.
• Employers give staff a bonus or gift. In India, a Diwali bonus for employees and household staff is common.

Diwali money for household staff and helpers

Families often give a festival bonus to people who help them regularly, like a housekeeper, cook, driver or nanny, along with sweets. In India, this is often around a month's pay for full-time household staff, though it varies widely. Abroad, many families follow local holiday tipping customs instead, and add sweets for Diwali.

For staff at a business, see Diwali gifts for employees, and check local tax rules on cash gifts.

How to give Diwali money

1. Use an envelope. Decorated shagun envelopes are sold in Indian stores and online. Any bright envelope works.
2. Use new, clean notes if you can. Many families visit the bank before Diwali for fresh notes.
3. Write a short blessing on the envelope or a card. See what to write in a Diwali card.
4. Give it in person when you visit, often after the puja or before the meal.
5. Hand it over with your right hand, or both hands, as a sign of respect.

Giving Diwali money from another country

If you can't be there, a bank transfer or payment app is fine, and increasingly common. To keep it personal:

• Keep the amount ending in 1, even when sending digitally.
• Send it a day or two before Diwali, with a message.
• Ask someone at home to put it in an envelope for the child, so they still open something.
• Call on Diwali night while they open it.

Money or a gift?

Money suits children, teens and young adults, who often enjoy choosing for themselves. Gifts suit elders, hosts and families you visit, where cash would feel out of place. Many people give both: a small gift or sweets, with money tucked inside for the children. For gift ideas, see Diwali gifts for family.