Burning of Chinese Paper Money also known as Ghost Money is an ancient tradition that goes back thousands of years and one that is held to this day when honoring the ancestors. Offerings are made to the spirits of the deceased and according to the traditions and superstitions, the properties of the presents that are set on fire will transfer to the afterworld where it can be used by the spirits, in this case money.Ghost money can be printed to look like money notes, or have simple designs like characters or emblems. It can be hand-made with a variety of materials, rice paper is quite popular, as is the golden/silver metallic paper.