How The Tooth Fairy Lost Her Magic Over The Years
Unfortunately, this spells bad news for the humble Tooth Fairy.
We talk a lot about how rising costs are affecting everything from groceries to rent, but it turns out even the Tooth Fairy isn’t immune to the economic ups and downs. Each year, Delta Dental tracks what kids in the US are finding under their pillows, and the latest data shows a notable shift: the amount of cash left for a lost tooth has dipped to its lowest point in more than two decades.
In the 2025 Original Tooth Fairy Poll®, the average payout fell to $5.01 per tooth, down from $5.84 last year. That’s a drop of nearly 14%, the biggest single-year decline since the survey began in 1998. For parents tallying up the total cost of childhood milestones, it’s yet another sign that inflation isn’t just affecting the price of gas or groceries - it’s filtering into even the smallest corners of family budgets.
Interestingly, this downturn comes at a time when the broader stock market has been on the rise: the S&P 500 climbed about 26 percent over the past year, while the Tooth Fairy’s generosity slid in the opposite direction.
For children losing their baby teeth, a rite of passage that averages about 20 teeth over childhood, that decrease adds up. At the current rate, kids stand to earn roughly $80 total for their full set of baby teeth. Had the Tooth Fairy kept pace with last year’s average, they would have collected closer to $117.
Children typically shed twenty baby (primary) teeth.
Regional differences are also becoming more pronounced. Families in the South actually saw a slight increase, with the average tooth earning $5.71 (up from $5.51 in 2024). In contrast, the Midwest lags behind the national average for the second year running, offering less than $4 per tooth. The Northeast and West also experienced declines, though they remain above the Midwest’s payout.
Iliana Mestari
While it may seem odd to analyze fairy folklore through the lens of economics, the Tooth Fairy has long served as a playful introduction to financial concepts for young children. The character first appeared in print in a Chicago Tribune article back in 1908, though tales of magical creatures swapping teeth for gifts date back centuries.
That original newspaper piece suggested mothers keep a handful of small trinkets ready for when a loose tooth fell out—and leave a nickel under the pillow as a reward.
The amount of money left by the Tooth Fairy has been decreasing.
Fast-forward more than a hundred years, and that nickel has turned into a few dollars. Yet, as household budgets tighten, the Tooth Fairy’s going rate appears to reflect real-world spending pressures. Even a fun childhood tradition is not entirely insulated from broader economic trends.
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For parents, this survey can spark conversations about saving, spending, and how money holds different values in different places. It might also be an opportunity to involve children in setting their own Tooth Fairy rates - whether deciding on a fixed amount, basing it on good dental hygiene, or using the occasion to tuck away a portion of the payout into a savings account.
At the end of the day, losing a tooth remains a milestone worth celebrating - regardless of what’s left under the pillow. But as the Tooth Fairy’s budget tightens, families are reminded that no part of our financial lives, however whimsical, is immune to the realities of a shifting economy.
Damjan
