Even the tooth fairy is feeling the pinch of high inflation, according to a recent survey conducted by insurer Delta Dental.
The survey revealed that the average amount of cash left under children’s pillows by the tooth fairy (read: parents) dropped to $5.84 in 2023, marking a 6% decrease from the previous year’s average of $6.23.
This decline represents the first drop in tooth fairy payouts since 2018.
Even the loss of a first tooth, which typically commands a higher reward, saw a decrease in average gift value. Last year, the average gift for losing a first tooth was $7.09, down from $7.29 in 2022.
Tooth fairy generosity
The survey, which polled 1,000 parents of children aged 6 to 12, also found regional disparities in tooth fairy generosity.
Children in the western part of the United States received the highest average payouts, with lost teeth fetching an average of $8.54 in 2023, a notable 37% increase from the previous year.
In contrast, children in the Midwest experienced the sharpest decline in tooth fairy payouts, with the value of lost teeth plummeting by 36% to $3.63.
Similarly, children in the South saw a 16% decrease, with the average tooth fetching $5.51 compared to $6.59 in 2022.
Changing trends
The survey noted that the tooth fairy’s gifts historically correlated with the performance of the S&P 500, but this trend deviated in the past two years.
In 2022, despite an 18% decline in the S&P 500, the tooth fairy set a record high with an average gift of $6.23.
Conversely, in 2023, while the tooth fairy’s payouts decreased, the S&P 500 rebounded with a 24% gain, reflecting the resilience of the economy amidst challenges such as high interest rates and soaring inflation.
The survey results indicate that even the whimsical tradition of tooth fairy visits is not immune to the economic realities faced by households in an inflationary environment. As families navigate financial pressures, even the small joys of childhood may feel the impact of broader economic trends.
