This tooth fairy money is a super cute way to make losing a tooth that much more special. Kids of all ages can make their own special tooth fairy money after losing a tooth. It’s budget-friendly, fun, easy, and did I mention the glitter? This tooth fairy money craft is great to do no matter how old the child is, but it is also fun for adults who just want to surprise their kids.

tooth fairy money- Text: sparkly tooth fairy money- kids activities- dip dollar in glue, sparkles on dollars

Fun Tooth Fairy Money Craft

This tooth fairy money craft is perfect for anyone who is about to get a visit from the tooth fairy. It’s a fun twist to the whole tooth fairy story and makes for a unique experience. Plus, it’s budget friendly as all you need is a dollar, glue, glitter, a sponge, and container. It’s that easy! There are many variations on making tooth fairy money, but this is our favorite method.

Related: Magical Unicorn Coloring Pages for Kids & 20 Sparkly Glitter Crafts

If you have any hesitance due to the controversial nature of decorating money, please scroll down to the bottom (Legality Of Tooth Fairy Money) for some reassurances.

Supplies Needed To Make Tooth Fairy Money

Supplies to make tooth fairy money- bin with sponge and glue, glitter, and dollar on wood background
  • Square Container
  • Sponge
  • Glue
  • Glitter
  • Dollar Bill

How To Make Tooth Fairy Money

Step 1

Our secret to getting the glue on the dollar evenly is our glue bucket. It is marvelous. Pour glue into a small tub and cut a wet sponge to fit into the container.

Step 1- Tooth Fairy Money- Dip your dollar bill on a sponge filled with glue- kids activities blog
Take your money and press it on the glue filled sponge.


The sponge will soak up the glue and you will have a large surface glue “stick” of sorts. This is better than our glue sticks (which are always dried out) and better than squeeze glue (which globs or little hands can’t use easily).

Step 2

Press the dollar onto the sponge so the front of it has a good amount of glue on it.

Step 3- Tooth fairy money- sprinkle glitter on your money- kids activities blog
Sprinkle glitter on your money.

Step 3

Sprinkle with glitter.

Step 4

Let it dry. And then hide it under your child’s pillow!

Related: Like that nifty glue trick?? Check out our other Craft Hacks for Kids.

Our Experience With With This Fun Tooth Fairy Money

The tooth fairy seems to visit in bursts. One of our kids just lost TWO teeth. She is overjoyed. While I am the “tooth-fairy” we have a fun tradition.  

The child with the missing tooth gets to make their own “fairy” money. On our Facebook wall about a year and a half ago I asked for ideas of what to do as my gal was about to lose a tooth.   Someone on there put up photos of their money. They used glue sticks and sprinkled glitter over the money so that it sparkled as if fairy dust covered it.

My kids wouldn’t let me play with glitter along, so they began making their own money. They cover it with glue and glitter, I hide it under their pillows in the night. We have fun!

Legality Of Tooth Fairy Money

I know some of you have are looking for this because we have all heard that defacing money is a crime. And it is. However, I did some scouring on the internet and this is what I found (this is not legal advice and I am not a lawyer).

This is the actual law:

“Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national
banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.”

18 U.S.C. 333 : US Code – Section 333: Mutilation of national bank obligations states

That being said, this law exists mainly to prevent counterfeiters and scammers from creating or altering money for any nefarious purpose they may come up with.

And while it is illegal to “mutilate, cut, deface, disfigure, or perforate, or unite or cement together” any bank bill, the key phrase is “with the intent to render bank notes unfit to be reissued.”

Meaning the law would have to prove your intent for making tooth fairy money was solely to make the dollar bill unfit for circulation. Which I and many other people never intended to do.

Tooth Fairy Money Alternatives

But if you’re still uncomfortable decorating money to make tooth fairy money than we have some great alternatives. You can decorate fake money to make tooth fairy money and maybe leave a note that tells your child to “cash in” the tooth fairy money to daddy or mommy when they want to buy something or to get real money that doesn’t have glitter on it.

We have some fun play money you can download and print:

We also have a great list of play money you can purchase if you want something different:

More Fairy Crafts From Kids Activities Blog

Looking for more fairy crafts? We have so many great fairy crafts that you and your kids will love!

How did your tooth fairy money turn out?

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  1. It may not be illegal but it’s still not civically responsible. As soon as your glitter dollar gets to a bank it’ll be “damaged out” meaning they send it to the fed to be destroyed and reprinted. Don’t cost everyone else money just so you can give sparkly dollars.