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The Tooth Fairy
The Tooth Fairy is a fantasy figure of early childhood in Western and Western-influenced cultures.
The folklore states that when children lose one of their baby teeth, they should place it underneath their pillow or on their bedside table and the Tooth Fairy will visit while they sleep, replacing the lost tooth with a small payment.

Origins

In Northern Europe, there was a tradition of tand-fé or tooth fee, which was paid when a child lost their first tooth.
This tradition is recorded in writings as early as the Eddas (c. 1200), which are the earliest written record of Norse and Northern European traditions.

The reward left varies by country, the family's economic status, amounts the child's peers report receiving and other factors.
A 2013 survey by Visa Inc. found that American children receive $3.70 per tooth on average.
According to the same survey, only 3% of children find a dollar or less and 8% find a five-dollar bill or more under their pillow.

During the Middle Ages, other superstitions arose surrounding children's teeth. In England, for example, children were instructed to burn their baby teeth in order to save the child from hardship in the afterlife. Children who did not consign their baby teeth to the fire would spend eternity searching for them in the afterlife. The Vikings, it is said, paid children for their teeth. In the Norse culture, children's teeth and other articles belonging to children were said to bring good luck in battle, and Scandinavian warriors hung children's teeth on a string around their necks. Fear of witches was another reason to bury or burn teeth. In medieval Europe, it was thought that if a witch were to get hold of one's teeth, it could lead to them having total power over them.

The modern incarnation of these traditions into an actual Tooth Fairy has been traced to a 1908 "Household Hints" item in the Chicago Daily Tribune

©Wikipedia