There was once a village that was terrorized by a monster at the same time every year. The monster targeted children. The townspeople could not defeat the monster and the monster would not leave them alone. One day, a young man with a red pouch went to battle the monster, but the monster ran from him. The man returned to the village, telling the townspeople that the monster was frightened by the color red. So, everyone in the village dressed their children in red. When the monster came to the village, it quickly fled, fearful of the color red. The villagers took the color red as a symbol of luck and gave the children red envelopes every year to ward away the monster and to bring good fortune to the child.

My informant has known this story as long as he can remember. His parents would tell it to he and his cousins around Chinese New Years. The monster described serves as a form of boogeyman, and the fact that the red envelopes given by the parents are needed to ward him away the monster allow for a form of black mail to make the children behave as the new year approaches, much as Santa does around Christmas time for Christians. It would be interesting to know if these traditions developed independently or if one inspired the other.