Q. I was visiting a dear modern friend and witnessed something really strange. He lit the first day a great beautiful Menorah, but around it he placed all kinds of gifts for his kids. Is that permitted?

The practice of giving gifts during Christmas time, according to Christian tradition, is symbolic of the presentation of the gifts by the Three Wise Men to their infant deity. So, indeed, why is there a tradition to give gifts or money to children during Chanukah, should it not be prohibited because it is after all the tradition of the other religions to do so at this time of the year during their holidays?
A. On question 688 we wrote:

“When exactly did the tradition of distributing Chanuka gelt, D’mei Chanuka or small monetary gifts to children began, is hard to tell. However Derech Sicha (190) mentions that the source for this tradition is the Mogen Avrohom (beginning of 670) who mentions that Chanuka was a special time for collection of Tzdaka for the poor, including their children. He adds that his Father the Steipler Gaon zt”l use to distribute them on the night of the fifth light of Chanuka, since it never coincides with Shabbos. Kaf Hachaim (670: 4) also mentions this tradition.

Otzreinu Hayoshon p. 82, states that it was an ancient Yerushalaim custom for the talmidim of the Talmud Torah to collect on the eight day, for a Zoz Chanuka banquet.
Chidushei Harim (Pneniney Hachasidut p. 49) explains that the source is the posuk (Mishlei 3: 16) “Length of days is in its right hand; in its left hand are riches and honor”. The right hand is a reference to the Mezuza, which is placed on the right side as you access an entrance. Since the Torah (in the daily Shema) rewards with a lengthy life the one who upholds this mitzvah, it follows that the mitzvah of the menora, which is placed on the left side, will be compensated with wealth and honor. Hence, the symbolic Chanuka gelt. He further adds, that the mitzvah of the mezuza is primarily an obligation of the inhabitants of the house (chovas hadar), while the menora’s purpose is pirsumei nissa or the exposure of the miracle to the street. Normally Parnassah and monetary funds are obtained in the commercial outside world, hence the custom of Chanuka gelt.

Shaarei Halacha Uminhag 283, p. 280) explains that the Yevanim and Hellenists prohibited Torah learning specially by the youngsters. When they were defeated, the teaching of the young restarted. Rambam (H. Teshuva 10: 5) mentions that the beginning of teaching of the young should be encouraged by small monetary gifts.

Yair Neri (p.146) quotes the Avnei Nezer’s reason. This is based on the premise that Chanuka’s traditions should be similar to the ones of Pesach. On the Seder night we give out of candies, nuts and sweets to children to enhance their interest and keep them awake, so too in Chanuka we enhance and create interest and the necessary Pirsumei Nissa.

Yogel Yaakov (p. 184) provides one more rationale He explains that in regards to a fast day, the Talmud (Brachot 6b) avers that; the reward for a fast day is the tzdaka given to the poor. Since there was a saving of monies by the abstention of eating. Those saved food funds should be donated to the needy. By the same token, since on Chanuka the miracle provided a saving of oil, those funds are now symbolically given to children.

Horav Shlomo Miller’s Shlit”a opinion is that, although many reasons are given for Chanuka gelt, it is only a custom and not a mitzvah, therefore there is no need for Hatoras Nedarim. The monies could be given on Chanuka via an agent or in need after the festivity.
On question 691 Shift the Chanuka Gelt to Chanuka Gift? We wrote:

Q. Thank you so much for your fast response On Q. 688, (Chanuka Gelt means a Velt). Why is it not prohibited to give Chanukkah gelt or presents, since after all it is a Chok Hoamim tradition during their holiday?

A. Avnei Yashfe (O.H. 129: 2) addresses this question and he asserts that the prohibition of “not following their edicts” applies, as the Maharik (88) and Remah (Y.D. 178:1) maintain, only to statutes that don’t have a valid reason or benefit. As amply explained in answer 688 there are many reasons for Chanuka Gelt. The main one being that Chanuka is a time for joy and happiness, so we also share it with the young ones.

Although that is true of Chanuka gelt, there is no early-established tradition to give gifts. One may argue that the proper present will bestow greater joy and happiness to a child than a few coins. After all a gift is Shove Kesef, and is therefore tantamount to money and should be permitted.

Horav Shlomo Miller’s Shlit”a opinion is that it is better to give money to comply with the minhag, but presents are also permitted.