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A Red Packet (Red Envelope) is simply a red envelope with money in it, often decorated with lucky symbols, which symbolizes luck and wealth. It is called Hong Bao in Chinese.

Occasions for Red Packets
Traditionally red packets are handed out to younger generation by their parents, grand parents, relatives, and even close neighbors and friends during Chinese New Year. They are also popular gifts for weddings and birthdays. Nowadays giving red packets as a bonus at the year-end by employers becomes popular.

How Much to Give
It depends on the situation. If you give red packets to kids for the New Year, age will be an important factor. Usually the older the kids are, the more money they will get. For a kid of five years old, one or two dollars will be fine. It will be better to have enough money in the red packet for a 15-years old to buy something himself.

If you go to a wedding, the money in the red packet should be about right for a nice gift. Naturally you will be glad to put a little more money in it if you have a very close relation with the couple. But it should be based on your financial situation and don't overdo it. It is similar for birthdays. The red packets usually contain less money since birthdays are not as important as weddings. People often just bring gifts for birthdays. You can also bring gifts for weddings.

Giving red packets to employees prior to the New Year is also a good idea. This can be either a gift or a bonus. If it is as a gift, the money should be just right for a gift. If as a bonus, you may enclose a check in the red packet and hand it out in an office.

Useful Links
How to Make a Chinese Gift Packet

Lucky Money Line from the US Government
To celebrate this New Year with this exquisitely designed Prosperity Note Package featuring an uncirculated $1 note with a serial number beginning with "8888."

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