Why We Give Chanukah Gelt | WATCH

There are surprisingly very few classic sources that explain why we give Chanukah gelt, money to children on Chanukah. Some even question the practice altogether. If you want to give a child something, why not just buy them a gift? What is the point of giving money specifically?

The answer lies in understanding what Chanukah is truly about.

Hanukkah is not just a celebration of miracles from the past; it is a time devoted to chinuch, education. It is about teaching children how to live, how to think, and how to recognize the power placed in their hands. Giving children money is not about indulgence; it is about teaching them the deeper lesson of potential.

Money is a fascinating concept. A person with money is considered rich; a person without it, poor. Yet money itself has no inherent value. When it sits in a bank account, it is nothing more than a number. Its value only emerges when it is used. What you do with money reveals what it is truly worth.

That is the message of Chanukah gelt.

The same is true of human abilities. A child can be intelligent, courageous, articulate, or creative, but if those qualities are never used, they remain meaningless. Potential that is left untouched does not stay neutral. Over time, unused potential often turns into frustration, regret, and sorrow.

This idea echoes a well-known insight attributed to Warren Buffett: when people spend money on things they do not need, they eventually end up selling things they do need. The same applies to our strengths. When we waste our time mindlessly scrolling or avoiding effort instead of developing our abilities, we may later discover that the talents we needed were never built.

So why is this lesson taught specifically on Chanukah, and not on Pesach, Sukkot, Rosh Hashanah, or even Purim?

Because Hanukkah is the festival of light.

Lighting the menorah teaches us that light requires fuel. A flame cannot burn without consuming oil. To shine, something must be given up. The question Chanukkah asks each of us is simple but demanding: What are you willing to burn in order to shine? Comfort? Laziness? Sleep? Convenience?

Potential only becomes real when we are willing to sacrifice something for it.

I once asked a friend why he keeps a picture of his family in his wallet. He smiled and said, “So that when there’s no money left in my wallet, I remember exactly where it went and why it was worth it.”

This is a critical message for parents and children alike. Money spent on tutors, education, or therapy for a child is not money lost. It is one of the greatest investments a person can make. Chanukah teaches us that money itself is not good or bad, it depends entirely on what you do with it.

If money is used to compete with others, it will never bring satisfaction, because you never truly know what others have. The grass always looks greener on the other side, especially when it’s artificial. If money is used to inflate the ego, no amount will ever feel like enough, because the ego is never satisfied by numbers alone.

But when money is used to build character, develop wisdom, strengthen family, educate children, and help others, then it becomes light. Then it fulfills its purpose.

That is the deeper meaning of Chanukah gelt: teaching our children that money, like life itself, is not about what you possess, but about what you become.