“The $500 Tooth Fairy”: What This Viral Story Gets Wrong (And How To Get It Right With Your Kids)

When Zayn Malik shared that he gave his 5‑year‑old daughter Khai about $500 for losing her first tooth, parents online had feelings. Lots of them. Some called it sweet. Many called it “absurd.” And if you’ve ever dug for crumpled singles in your wallet at 11:48 p.m., you may have rolled your eyes and thought, “Cool, but what planet do you live on?”

The truth is, this isn’t really about Zayn’s money. It is about the messages we send our kids about money, no matter whether the tooth fairy brings $1 or $500.

Zayn Malik reveals that Gigi Hadid got mad at him for giving their 5 year old daughter $500 from the Tooth Fairy after she lost her first tooth
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The Real Issue Isn’t $500. It’s The Lesson.

In the interview, Zayn admits he “gave her a bit too much money from the tooth fairy” and says Gigi Hadid called him out on it. That little detail is what parents on Reddit and elsewhere really grabbed onto: not just the amount, but the precedent.

Parents pointed out two big concerns:

Expectations: If one tooth is worth $500, what happens with tooth number two… and twelve.
Comparison: Kids talk. One Reddit commenter noted how painful it is when one child brags about getting hundreds of dollars while another got $5 and wonders why their fairy is “cheaper.”

For most families, that number doesn’t work logistically or emotionally. But even if you can afford a big gesture, the more important question is: What are you teaching your child to do with money?

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If You’re Giving Big Money, Pair It With Big Education

Let’s say you decide to give your child a “wow” amount for a major milestone, whether that is $50, $100, or yes, even $500. The key is not the flex. It is the framework.

Here is how to turn a big gift into a teachable moment:

Attach a purpose, not just a prize. Decide together: What part is for fun, what part is for savings, and what part is for giving or investing. A common framework is “Save, Spend, Share.”
Make it visual. Use three jars or accounts so your child can physically see money being divided and growing over time. This aligns with the kind of intentional saving and automation financial experts like Winnie Sun emphasize: money doesn’t organize itself, we have to give it a job.
Normalize that money is a tool. It is not a measure of worth, love, or who is “better off” than their friends. That message matters just as much as the dollar amount.

A big milestone gift without any guidance is like handing your child the keys to a car and never talking about how to drive.

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Teach Them To Invest, Not Just Spend

Winnie Sun often talks about making saving and investing intentional and somewhat “out of reach” so it has a chance to grow. That mindset can absolutely be applied to kids.

Here are some practical ways to do that with a larger gift:

Turn part of the gift into an investment “seed.” For older kids, you might open a custodial investment account or, if they have earned income, talk about a Roth IRA and how even small amounts can grow over decades.
Show them growth over time. Once a month, sit down together and look at how their savings or investments changed. Keep it simple: “You started with $50. Now it is $52. Here is why.”
Link money to their goals, not just your values. Is there a big thing they want in a year or two? Help them set a goal, track progress, and see how delayed gratification pays off.

The tooth fairy can be cute and magical, but it is also a low‑pressure way to introduce concepts like interest, risk, and long‑term thinking while the stakes are still small.

Handling “Tooth Fairy Inflation” And Kid Comparisons

One of the most relatable parts of the online reaction was parents swapping stories about well‑meaning relatives or partners “accidentally” tripling the going rate. One mom on Reddit described leaving $5 while her husband, on tooth‑fairy duty, suddenly left $20. Others shared grandparents lobbying for $100, and parents scrambling to manage expectations.

A few smart strategies emerged from those conversations:

Make the first tooth special, but reasonable. Several parents said they gave a bit more for tooth number one, then a smaller, consistent amount for the rest.
Use creativity instead of pure cash. Some parents use $2 bills or coins that feel rare and magical, which kids love even when the actual amount is small.
Script your “comparison talk.” If your child comes home asking why their friend got way more, you can say something like: “Every family’s tooth fairy works a little differently. In our family, the tooth fairy focuses on small treats and helping you learn how to use money well.”

The goal is not to match anyone’s number. It is to keep the experience fun without creating pressure or shame on either side.

So… How Much Is “Too Much”?

Is $500 too much for a tooth? Most parents online clearly think so. For celebrity incomes, the math looks different, but the parenting question is the same one you face with your own budget:

Does this gift align with our values and our reality.
Am I using this moment to build my child’s confidence and competence with money.
Will this create expectations that feel sustainable and fair, especially if we have multiple kids or different financial seasons ahead.

You do not need Zayn Malik’s bank account to raise a financially savvy kid. You just need to be intentional. Whether the tooth fairy brings a dollar or a small fortune, the most powerful thing you can give your child is not what is under the pillow. It is the quiet, ongoing education about earning, saving, investing, and giving that will follow them long after the last baby tooth is gone.