homehome Home chatchat Notifications


The Tooth Fairy Index Is A Surprising Indicator of Financial Anxiety

Even the Tooth Fairy’s payouts are shrinking, although the stock markets are doing fine.

Mihai Andrei
February 26, 2025 @ 1:12 pm

share Share

The Tooth Fairy is a beloved childhood figure, slipping money under pillows in exchange for tiny teeth. Surprisingly, folklore customs can also be used as an economic indicator, at least in the US.

The Tooth Fairy Index is an informal economic indicator that tracks the average amount of money children receive from the Tooth Fairy for a lost tooth. It’s used to reflect trends in consumer spending, inflation, and economic confidence. When the economy is doing well, consumer spending increases and investor confidence rises. This makes stock markets do well and drives up the S&P stock market index that tracks the performance of 500 of the largest publicly traded companies in the US—as well as the Tooth Fairy Index.

Traditionally, the Tooth Fairy Index has correlated well with the S&P 500. But recently, the tooth fairy isn’t doing so well. For the second year in a row, an annual Delta Dental survey found the tooth fairy is paying less for lost teeth than the year before, even as the stock market is going up.

Image credits: Delta Dental.

The survey, carried out on 1,000 parents of children ages 6-12, showed that the value of a single lost tooth declined by 14% from $5.84 to $5.01. The record value was reached in 2023: an average of $6.23 per single tooth.

Overall, the trend shows growth. In 1998, the average cash gift per tooth was around $1.30. Interestingly, the Tooth Fairy Index saw notable growth during the economic uncertainty of 2020, when COVID-19 disrupted global markets. However, the current situation seems more uncertain for parents as payouts are dropping. Overall, however, the pattern follows traditional economic cycles, reinforcing the idea that even folklore traditions are sometimes tied to major financial forces.

However, what’s more surprising is that the Tooth Fairy Index and the S&P are apparently decoupling. If the S&P 500 is rising while the Tooth Fairy Index is declining, it could suggest that stock market growth is not translating into increased consumer confidence or household spending. This might happen if economic gains are concentrated among corporations and investors, while everyday families remain cautious due to factors like inflation, stagnant wages, or economic uncertainty.

In other words, Wall Street may be thriving, but Main Street isn’t feeling the benefits. Parents who feel insecure about their finances are less likely to be more generous, reflecting broader economic confidence (or lack thereof).

Of course, the Tooth Fairy Index is more of a fun cultural phenomenon than a strict economic measure. The sample size is small, and cultural differences play a role—some households stick to a firm $1 per tooth tradition, while others may go big and “index with inflation”. Some don’t do it at all. Still, as a quirky economic indicator, the Tooth Fairy Index offers an interesting look into consumer sentiment in the US.

For now, one thing is certain: The Tooth Fairy isn’t just about childhood magic—she may also be a reflection of economic trends.

share Share

Coolness Isn’t About Looks or Money. It’s About These Six Things, According to Science

New global study reveals the six traits that define coolness around the world.

Ancient Roman Pompeii had way more erotic art than you'd think

Unfortunately, there are few images we can respectably share here.

Wild Orcas Are Offering Fish to Humans and Scientists Say They May Be Trying to Bond with Us

Scientists recorded 34 times orcas offered prey to humans over 20 years.

No Mercury, No Cyanide: This is the Safest and Greenest Way to Recover Gold from E-waste

A pool cleaner and a spongy polymer can turn used and discarded electronic items into a treasure trove of gold.

This $10 Hack Can Transform Old Smartphones Into a Tiny Data Center

The throwaway culture is harming our planet. One solution is repurposing billions of used smartphones.

Doctors Discover 48th Known Blood Group and Only One Person on Earth Has It

A genetic mystery leads to the discovery of a new blood group: “Gwada negative.”

More Than Half of Intersection Crashes Involve Left Turns. Is It Time To Finally Ban Them?

Even though research supports the change, most cities have been slow to ban left turns at even the most congested intersections.

A London Dentist Just Cracked a Geometric Code in Leonardo’s Vitruvian Man

A hidden triangle in the vitruvian man could finally explain one of da Vinci's greatest works.

The Story Behind This Female Pharaoh's Broken Statues Is Way Weirder Than We Thought

New study reveals the ancient Egyptian's odd way of retiring a pharaoh.

China Resurrected an Abandoned Soviet 'Sea Monster' That's Part Airplane, Part Hovercraft

The Soviet Union's wildest aircraft just got a second life in China.