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Home / Northern Advocate / Business

Gifts of money could be welcome presents

By Liz Koh
NZME. regionals·
16 Dec, 2016 02:18 AM2 mins to read

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Whatever your age, Christmas is a stressful time of year, and much of the stress is caused by financial pressure.

It seems rather silly that so much precious money is spent on gifts that may not give lasting pleasure, if any at all.

Economists would argue that spending money on gifts for others does not give the most satisfaction (or utility, in economic jargon) per dollar spent.

That's because it's not easy to judge how much the other person will appreciate the gift.

Despite that, we still give gifts as an expression of love, gratitude or concern for someone's wellbeing.

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Yet there are lots of reasons it's good to give money instead of, or as well as gifts.

To start with, there are plenty of people who could do with a bit of extra cash at Christmas to pay for necessities rather than luxuries.

For students with low incomes and big debts, elderly people struggling to pay their bills, and children who are saving for something they really want, money is a welcome gift.

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You can use a gift of money as a way of teaching children about money; that is, explaining to them the need to set aside money for later, or to save for a goal.

You could even give a small investment of shares or a managed fund to teach children how investment markets work.

Giving money doesn't have to be boring. Check online for creative ways to give money.

There are plenty of ideas for how to use notes and coins to make decorative gifts, such a money bouquet, a money Christmas tree, or a box of money 'chocolates'.

Christmas is a time to think about giving to those who are most in need. Include a charity on your Christmas list to spread the good cheer!

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