Giving Money as a Christmas Present?

Struggling with ideas of what to give for Christmas this year? Everyone agonizes over that perfect present, but an increasing trend is to simply give money as a Christmas gift. In the current economic climate no one will be upset at receiving a little extra cash, but is it what you really want under your tree on Christmas morning? According to a survey carried out by banking group First Direct, over $500 million is expected to be paid out in Christmas cash, with around 20% of the 1,200 people interviewed expecting money as a present. The average amount given works out at around 80 Euros, or £60.

Benefits of Giving Cash for Christmas

Giving cash as a present takes the hassle out of choosing a present for someone you find it hard to buy for, and stops you receiving gifts you don’t want- like another awful woolly jumper. It is certainly a good option for elderly relatives who find it difficult to get out and about in the winter. Around 35% of people go into their overdraft during the festive season, and 24% dip into their savings, so any extra money will not be received ungraciously.

Is Money an Impersonal Gift?

But when you wake up on Christmas morning, no matter what age you are, nothing beats tearing off the wrapping on your presents. This feeling can’t be found when taking money from an envelope no matter how useful it is. Cash a present can also be seen as an impersonal and unfeeling gift, making it appear like the giver has put no effort in. While a present could be something cheap and get away with the old adage ‘it’s the thought that counts’, giving someone a £5 note could simply be embarrassing for both parties or even seen as an insult.

Approximately 43% of cash received as a Christmas present is spent on luxury goods, showing that a large percentage of people buy themselves the gifts they wanted instead of presents they might not have liked. However, 36% spend it on everyday things like shopping and household items. This highlights the problem of giving money, as the money goes into normal finances instead of treats, and the recipient is left with no reminder of the gift.

Weigh the Pros and Cons Before Giving Cash Presents

This is seen further in the fact that 25% of people put their Christmas cash into savings accounts and 10% use it to repay debts. Obviously cash is useful, but it simply doesn’t bring festive spirit in the way a traditional present would. A nicely wrapped present under the tree will bring joy at Christmas, but a present of cash will help bring financial stability, so the question that needs to be asked is which one would you prefer this festive season?

Merry Christmas To You All! Hope This Christmas And New Year Brings A Lot of Good Memories To You 🙂