Even the Tooth Fairy Is Paying More These Days, Poll Shows

Like you, the Tooth Fairy is spending more money in 2023. 

If you feel like everything costs more lately, you're not alone. Inflation has come for all of our wallets. Even our cherished gift-giving legends are paying more than they were in years past. A recent poll shows that the Tooth Fairy is paying much more per tooth due to inflation. While this is likely welcome news for kids with lost teeth under their pillows, the study's findings further highlight that we're all battling higher costs. 

The average value of a single tooth in 2023 is $6.23 

Most of us are paying more for groceries, gasoline, rent, utilities, clothing, and everything else. The Tooth Fairy is also giving more generously to keep up with inflation. A recent poll from Delta Dental shows the average value of a single tooth is now $6.23, an increase of 16% in the last year. In 2022, the average value of a single tooth was $5.36. 

The study also found the average tooth value varied by location. Here are the U.S. regional tooth value averages for 2023: 

• In the South, the average value of a lost tooth is $6.59.
• In the West, the average child is receiving $6.25 per tooth. 
• In the Northeast, the average tooth value is below the national average at $6.14.
• In the Midwest, the average child finds $5.63 under their pillow. 

With this data in mind, the Tooth Fairy may want to assess its financial goals to ensure they're on track. It's good practice for all consumers -- even those with wings, to review their budgets occasionally and make necessary adjustments. Without a budget, it can be easy to overspend and rack up debt, which could worsen your financial situation and hurt your credit score. 

Now is a good time to teach your kid about saving 

There's one positive side to the results of this study. Many kids are being given more cash for their lost teeth. If your child is starting to lose teeth and has been getting visits from the Tooth Fairy or is receiving an allowance, it's not too early to educate them on the importance of saving. Teaching your child about money early in life can set them up for success in adulthood. 

If your child has been earning money, it may be time to consider opening up a savings account. They can earn interest on their savings and keep their money safe until they're ready to use it for a future purchase. It's a good way to help your child develop positive money management habits.

An emergency fund can offer added protection 

Many Americans are struggling to keep up with rising living costs. If you're finding it harder to manage your money during this time, you're not alone. One thing you can do to protect yourself is create an emergency fund. Even if you can only contribute a small amount of extra money each month, it will add up over time and make a difference. 

An emergency fund can save the day when a costly unexpected bill comes your way or when higher prices make your life more expensive. If you're forgetful, you can automate the savings process, so money is regularly transferred to your emergency fund. Check out these personal finance resources to learn more about essential money management topics.