Chanukah Gelt:[1]

It is a Jewish custom, which is Torah, to distribute Chanukah Gelt to children.[2] This was also the custom of the Chabad Rebbeim. One is to distribute even to his married children. The purpose of this custom is to motivate the child to learn Torah.[3] Accordingly, one is to explain to the child upon receiving the money that it is being given so they increase in learning Torah.[4]

When to give: Parents are to give Chanukah Gelt to their children every day of Chanukah, with exception to Shabbos.[5] On Friday or Sunday, one is to give a double portion on behalf of Shabbos. One is not to give Chanukah Gelt on Shabbos, even in the form of non-Muktzah items.[6] On the 4^th or 5^th night they should give a double or triple portion.[7]

Distributing to students:[8] A Rebbe is to give Chanukah Gelt to his students.

Distributing to spouse:[9] Spouses are to request Chanukah Gelt from each other; the wife is to request from the husband and the husband from the wife.

[1] Toras Menachem 5748 2:65; Likkutei Sichos 20 p. 452; Rebbe in Shaar Halacha Uminhag 2:283; Shulchan Menachem 3 p. 288-289; Sefer Haminhagim P. 161

[2] Toras Menachem ibid; See Likkutei Levi Yitzchak p. 358

[3] Toras Menachem ibid; As the Greeks nullified our Torah learning, and the idea of giving children money is connected with motivating them to learn Torah. [See Rambam Pirush Hamishnayos Sanhedrin Perek Chelek]

[4] Toras Menachem ibid

[5] Now, although the [Previous] Rebbe would distribute coins for “Chanukah gelt” (gifts of pocket money) on only the fourth or fifth night of Chanukah, in order so the children rejoice over the new receiving of the gift, nevertheless today with the great darkness of exile one is to give daily. [Rebbe ibid]

[6] Toras Menachem ibid, due to a decree [that one not come to give out Muktzah items]

[7] This is in light of the custom of our Rebbeim to give Chanukah Gelt on the 4^th or 5^th night. Now, since today we give every day, therefore on the 4^th or 5^th night a double or triple portion should be given to commemorate this. [Rebbe ibid]

[8] Igros Kodesh 21:195

[9] Hisvadyus 5747 2 p. 132