Why do we give out red envelopes for the Lunar New Year?

The Lunar New Year is a joyous, noisy winter holiday — its days are filled with parades, bright red signs and banners with good-luck messages, and firecrackers. For people in many countries around the world, it’s a time for annual family gatherings that feature special gifts and meals … and more firecrackers.

If you’re ever wondered “Why firecrackers? What do those red signs say?” these traditions are tied to an ancient Chinese legend.

Once upon a time, there was a fearsome monster called Nian (年, pronounced Nián). Every year, before the spring arrived, Nian would emerge from his den and hunt for prey. His favorite things to eat were children and livestock. People lived in fear of him, and they’d board up their houses before going somewhere to hide. As the residents of a village were packing up for their escape one year, an ancient man visited, begging for food. He was a stranger, and the people were too busy running away to tend to him. However, one kind old lady gave him rice and urged him to flee with the rest of the village. The old man said, “If you let me stay in your house for one night, I can promise you that the monster will never come back again.”

She was skeptical, but the beggar said, “Just leave it to me. I have a secret weapon to help fight this thing.” Although she let him stay at her house, she departed with everyone else. That night, the monster came to the village and saw candlelight shining in the window of one house. He approached the door, licking his lips, ready to pounce on the poor victim inside. But before he could enter, he saw three red banners that had been hung around entrance and he paused. The energy radiating from the talismans made him dizzy, but he was too hungry to care. He went on, desperate for a late-night meal.

Suddenly, the old man appeared. He tossed bamboo sticks into a bonfire that he’d prepared earlier. When the bamboo heated up, the air sealed in its hollow chambers expanded, and produced an explosive “Boom!” The noise startled the monster, and he ran away, never to be seen again.

Read More at https://ideas.ted.com/why-do-we-light-firecrackers-on-chinese-new-year