Hong bao... literally translated as "red packet".
Socially, chinese culture can be quite troublesome (the whole "face" thing). "The amount given [in a red packet] should be relative to your financial situation and you shouldn't overdo it as it can also be considered as showing off if you give more than you can afford." If you give too little, then perhaps the "strength" of the relationship is not all the great. If you give too much, then you might be seen as showing off.
General rules about the amount to give...
Give amounts with 8's (sounds like fortune) or 9's (sounds like longevity). Stay away from amounts with 4's (sounds like death). Also, the amount given should contain even numbers and not odd numbers (perceived as denoting loneliness). And then there is "168", which sounds like "prosperity forever". ("16" sounds like forever?)
As should be obvious to anyone knowing a bit about Chinese culture, never give money in white envelopes. Money in white envelopes is usually given during sad occasions, like funerals.
Thinking about red packets reminds me of a memory of which I feel quite ashamed. When I was young, my parents used to have a Chinese New Year dinner at their restaurant, inviting many friends and family. This was all after my brothers could at least walk and talk and before the restaurant began tailoring towards an orthodox jew clientele. So they were 3-4 yrs old and I was 8-9 yrs old at the time. My brothers and I, of course, received many red packets from all the adults. I then tried to con my brothers into trading one or two of their larger bills for many more of the smaller bills. Yes, an evil, greedy sister I was that year.
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