Shagun: how to give money as a gift

Shagun is money given as a blessing at weddings, engagements, births, housewarmings and festivals. It is the most common gift in India, and for good reason: it is useful, it needs no guessing, and it lets the family buy what they actually need.

Why the amount ends in one

By custom a shagun is 101, 251, 501 or 1,101, never a round figure. The reasons people give differ: the extra rupee turns an "ending" number into a beginning, it makes the gift something that cannot be divided evenly, and it stands for the hope that the family's fortune will keep growing. Shops sell envelopes with a one-rupee coin already fixed on the front for exactly this purpose.

How to decide the amount

There is no correct figure, and this site will not suggest one. Families usually weigh these things:

Closeness: a brother gives more than a neighbour.
Your own means: give what you can give gladly. A blessing should not become a burden.
What was given to you: many families keep a notebook of shagun received and return a similar or slightly higher amount at the other family's function.
How many of you attend: a family of five at dinner usually gives more than a single guest.
Local custom: ask an elder what is usual in your community and city.

How to give it

An envelope with a line of blessing and your name
An amount that ends in one, by custom
New notes, if you can get them
Given to the couple, or to the parents, when you greet them

Hand the envelope with your right hand, or with both hands, and say a word of blessing. At large weddings a family member often sits near the stage to receive envelopes and note names, which is why your name on the envelope matters.

Digital shagun

Transfers by UPI are now common, especially from guests who cannot attend. Send it on the day with a warm message, and tell the family by phone so the message is not lost among hundreds. For elders, a physical envelope still feels more proper.

On other occasions

Raksha Bandhan and Bhai Dooj: brothers give sisters an envelope after the rakhi or the tilak.
Eid: elders give Eidi in crisp new notes to children.
Birth of a child: money is placed in the baby's hand or given to the mother at the first visit.
First visit of a new bride or groom to a relative's home: elders give shagun as they leave.

Tax rules on gifts of money exist and change from time to time. For large amounts, check the current income tax rules or ask a tax professional. This page describes customs, not tax or financial advice.

Questions people ask

Why do Indians give 101 or 501 rupees?

By custom a gift of money ends in one. The extra rupee is considered auspicious: it is seen as a new beginning and a wish for growth.

How much shagun should I give at a wedding?

It depends on how close you are, what you can afford, how many of you attend and what is usual in your community. Ask an elder of your family what is customary.

Should shagun be given to the bride, the groom or the parents?

Any of them. At the reception it is usually handed to the couple on the stage. Close relatives often give it to the parents during the rituals.