According to a Visa survey, since 2011, the tooth fairy has given children 42% more cash:
What is going on?
If tooth fairy cash had just kept up with inflation, then $2.60 in 2011 would have been equal to $2.70 today. However, thinking of today’s 6 year old’s parents, in 1982, a 6-year old getting $1.50 would have received the equivalent of $3.62 today. That actually means, looking at a longer time period, little has changed.
We should note that based on location, totals vary. That Visa study indicates that children in the Northeast got the most at $4.10 a tooth. Next was the West at $3.70, the South, $3.60 and then, at the bottom, the Midwest with $3.30. Also, because all of our numbers are averages, you do have kids getting more (even $120!) and less.
Here is how median income varies regionally. There is some tooth fairy correlation.
Sources and Resources: This NY Times article has more about the Visa study while economix provides insight about why some inflation is desirable. As for the fun stuff, do go to the BLS interactive inflation calculator.