Is It Okay to Give Cash as a Gift?
Is giving cash as a gift acceptable?
At some point, society began to view cash gifts as impersonal or inappropriate, with gift cards often facing similar criticism. But the reality is, cash remains a practical and well-received choice for many occasions.
Let’s explore what makes cash a great gift and why some people still shy away from gifting money. Stay tuned until the end for insights on when cash gifts might not be the best choice!
The Pros
1: Money is very portable.
If you live far from friends and family, chances are one or both parties have to travel to get together for holidays and special occasions. Cash fits in your wallet or any travel bag if you need to fly with it, or you can easily grab cash at a local bank upon arrival. Either way, neither you nor your recipient have to worry about traveling with bulky or heavy presents.
It can even be sent through an etransfer platform such as Venmo, Zelle or Paypal which is convenient for larger sums of money or remote gifting.
2: Money is versatile.
Gift someone an ice cream maker and what can they use it for? Making ice cream.
Gift someone cash and what can they use it for? Anything! A gym membership, a massage, a toy, a treat, or anything else they want. It’s such a versatile gift.
3: Money could be more needed than other presents.
As we discussed in the How to Think of the Perfect Gift Idea post, it can be hard to really appreciate a fancy gift when you don’t have the basic necessities you need to get by. Cash is a great way to help take the pressure off of your loved ones because they can put it towards bills, food, or other essentials or maybe towards an “extra” they’ve been wanting but haven’t been able to afford.
4: Money prevents waste.
Sometimes we don’t know our recipient very well, which makes selecting a gift difficult. And I don’t know about you, but I hate spending $30 (or much more) on a present someone already has, that they hate, or that they will only use once or twice when it’s intended for frequent long term use. It just seems like a waste. I would much rather gift them the $30 directly they can use on whatever they want or need.
The “Cons”
1: Cash is lazy or “low-effort”.
One of the top reasons people say giving money is taboo is because it is low-effort, meaning it implies not much thought went into choosing or making the gift. This is not necessarily true, but that is the stigma cash gifts have gotten.
As the recipient, it is important to recognize that the giver spent their hard-earned money on you regardless of the form it’s gifted in, and that work and effort should be recognized.
As the giver, there are many ways to “dress up” cash gifts to show your recipient you put thought and effort into their gift. Check out my post on Ways to Dress up Cash Gifts for some great ideas!
2: Cash implies financial need.
Some recipients feel that being given cash as a gift implies they need charity and cannot provide for themselves. Their pride is wounded and there can be a feeling of resentment towards the giver for creating a financial divide between one another.
It is important to consider the amount of cash you’re giving, the setting you’re giving in, and the feelings of the person you’re gifting to. This consideration can help avoid scenarios where the recipient is embarrassed by or resentful of your cash gift.
3: Cash is not usually sentimental.
Gifts often carry emotional or symbolic value, representing the relationship between the giver and the recipient. Cash is practical, but might lack that symbolic significance many people look for in gifts.
If you know your recipient prefers sentimental gifts but feel cash would be a good gift for them on this occasion, make sure to personalize it in a way that conveys sentimental value.
Scenarios When I Do NOT Recommend Gifting Cash
Cash is not only an acceptable gift, it is sometimes the best gift you can give someone. However, there are specific times I would NOT recommend giving cash as a present. Let’s dig into those scenarios!
1: Your recipient is very wealthy.
We always try to avoid giving gifts the recipient doesn’t need or want. When someone has a lot of money already, it doesn’t usually make sense to give them money as a gift. They don’t have a need or use for it.
2: You know your recipient doesn’t like cash as a gift.
If you already know your recipient doesn’t like cash as a gift (for any reason), then choose something else! We don’t ever want to intentionally give someone something they said they don’t want or like.
If they’ve expressed why they don’t like cash as a gift, it could point in the right direction for the type of gift they would prefer.
For example, if they said money is a low-effort present, make sure you give them something that displays a higher level of effort to give. Or if they expressed money isn’t personal enough, they might be looking for a gift with more sentimental value that shows you really know and love them.
3: When you are “exchanging” gifts
Imagine sitting with your significant other on your anniversary. You exchange presents and each open a $20 bill. Not very exciting, right?
Now what if one of you opened a $20 bill and the other opened $200? Or you opened a $20 bill after spending months putting together a photo journal of your relationship with keepsakes from your adventures together.
There just isn’t a great outcome for gifting cash in a setting where you’re exchanging gifts. Whether it’s just with your spouse, a large group gift exchange, or a small exchanging of gifts between loved ones, I would recommend avoiding cash as a gift.
4: In a corporate or business relationship
Cash is not the best gift in a professional setting for many reasons.
Sometimes there are rules or regulations against giving money to (or accepting money from) clients, vendors, or team members. It can be perceived as a bribe or curry favor in an environment where fairness and impartiality are crucial.
It can also create discomfort or blur boundaries in your working relationship.
Additionally, professional gifts often serve a distinct purpose, so they should be more thoughtful and specific than cash.
5: When your gift will be opened in a group setting
Consider the setting in which your gift will be opened. If it is somewhere public like a baby shower, a birthday party, graduation party, etc, the recipient might prefer not to open cash.
Instead, give your cash gift discreetly before/after the main “present opening” event or choose a different gift that would be better for your recipient to open in a group setting.
Other than these scenarios, I would encourage considering cash as a solid gift option. You will find it is a well-received and well-loved present by many recipients.
Don’t miss my tips for How to Become Better At Gift Giving and How to Become a Better Gift Recipient!
Now go out there and gift joyfully!❤️
