In the 1st, 2nd, and 3rd Edition of ECMAScript, using $-prefixed variable names was explicitly discouraged by the spec except in the context of autogenerated code:
The dollar sign ($) and the underscore (_) are permitted anywhere in an identifier. The dollar sign is intended for use only in mechanically generated code.
However, in the next version (the 5th Edition, which is current), this restriction was dropped, and the above passage replaced with
The dollar sign ($) and the underscore (_) are permitted anywhere in an IdentifierName.
As such, the $ sign may now be used freely in variable names. Certain frameworks and libraries have their own conventions on the meaning of the symbol, noted in other answers here.
