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Choosing and buying gifts for others can be difficult and time consuming, especially at Christmas when you’re shopping for several people at once. So gifting money could be a great alternative: it’s quick and easy, doesn’t require wrapping – and you don’t have to worry about wasting your money on something the recipient won’t like.
However, some of us may consider money a ‘bad gift’. Maybe you’re uncomfortable with handing over a cash gift instead of a carefully-wrapped parcel because it can feel a little impersonal. While there’s nothing nicer than being handed a gift you truly cherish, we all know how it feels to pretend we love a present that we immediately know we’ll never use.
What are the benefits of giving money as a gift?
Gifting money can be an effective way to avoid wasting time, money and energy – all of which are in short supply for many of us, especially at Christmas. Research from Finder shows that over half (58%) of Brits have received an unwanted Christmas gift, costing an average of £41 each – with toiletries, jumpers, mugs and novelty gifts proving to be the worst offenders. Spending money on items that won’t be used feels wasteful, especially as many of these items will go straight to landfill, which is bad news for the environment, too.
If you’re pushed for time, gifting cash can be quicker and easier. “It’s certainly a lot easier, especially for children or young people who you don’t know well or don’t know what to buy for them,” Laura Akano, etiquette coach at Polished Manners, told NerdWallet.
For this reason, cash can be a good option for children and teenagers who don’t have an income and need to save up to buy the things they want. Karen Webber, who has a nine-year-old son, Lucas, told NerdWallet, “It was Lucas’s birthday recently and he and I were both delighted when his gifts were almost exclusively cash. He loves going to the shops and choosing things.” She added: “A good friend of mine asked if he’d like cash and when I said ‘yes’ I could see the relief on her face – she doesn’t have to go and buy anything, she can just pop money in a card.”
What’s the best way to give money as a gift?
If you’re worried that money doesn’t feel like a ‘proper’ gift, vouchers can seem like a good alternative. However, Akano recommends that you put as much effort into choosing them as you would buying a gift. “Vouchers can feel like a bit of a cop-out if you haven’t really invested any time, energy or thought. Please make sure they are for a shop the person likes, and that there’s one local to them, so they can actually spend them.”
Linda Webb, who has three adult children, told NerdWallet that she doesn’t like gifting money, but feels differently about vouchers – mainly because they have to be spent on a ‘treat’, and can’t be absorbed into the general household budget and used to cover bills or a supermarket shop.
She said: “My children are now in their 30s, but I still hang envelopes on the Christmas tree with gifts inside. When they were younger they often contained money, but these days I tend to choose vouchers for activities, events or experiences that we can enjoy together. One year I gave them vouchers for a picnic, which involved going around different delicatessens to collect ingredients.”
Chosen carefully, Karen agrees that vouchers can be a great gift for adults. “We’ve had lovely vouchers for the local deli or independent stationers, and for the cinema.” However, she doesn’t think they are a good option for children, unless they’re saving up for a particular item from a certain store, partly because they may be easily lost and must be used before they expire. She said: “My son had vouchers for a toy store last year, but when he went in he was a little bit overwhelmed and felt under pressure to buy things just to spend the voucher.”
Where children are concerned, everyone we spoke to agrees that putting money inside a card works best, and it has the added advantage of teaching them how to handle cash. “I always tell relatives not to send a cheque, as that’s just a nightmare to get it to the bank – and it can be difficult for young children who don’t have a bank account,” said Linda.
If you’re wondering how much to give, Akano has the following advice: “Don’t overcomplicate it. Think about how much you would have spent on a present, and then give the equivalent amount in cash.” While £10 in a card might not look as much as a gift-wrapped toy or book, that doesn’t mean you should give more than you can afford.
How do you politely ask for money as a gift?
If you’d rather receive cash instead of shower gel, socks or a flashing reindeer jumper, it can be tricky to broach the subject with your nearest and dearest – especially if they prefer to give a gift.
“I wouldn’t ask directly for money,” said Akano. “It’s up to the giver to decide if that’s something they would like to do. But depending on the relationship, and how close you are, you could say something like: ‘If you’re thinking of buying a present, I would really appreciate some cash.’ But don’t make the person feel that they have to give you money, and remember that just because you’ve asked for it, it doesn’t mean they will give it to you.”
The situation is slightly different if someone asks what you would like. Akano said: “In this situation, it’s fine to say that you would like cash or vouchers, especially if you explain how you plan to use it.”
Finally, once Christmas is over, and the gifts have been opened, don’t forget to say thank you. However you choose to express your thanks – in person, in a letter, over text message, or via a photo – Akano told NerdWallet: “Make sure it’s expressed properly, show gratitude, and perhaps explain how the money or vouchers have been spent, or how you plan to use them.”
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