30 Ways To Give Money As A Gift

The most practical ways to give money include checks, cash, gift cards, bank transfers, and payment apps. Each method offers different benefits depending on the amount you’re gifting and how quickly the recipient needs access to funds.

1. Check

Checks remain a popular and reliable method for gifting money, offering a blend of tradition and practicality. They provide a secure alternative to carrying large amounts of cash while also allowing for a personal touch, like a heartfelt note in the memo line.

Checks are especially suitable for occasions like weddings, graduations, and significant milestones. You can gift up to $19,000 per year to another person without incurring taxes or needing to report the gift to the IRS.

Here are the advantages and drawbacks to consider:

Pros

Security: Checks are less risky to mail than cash. If they get lost or stolen, checks can be stopped and reissued.
Convenience: Recipients can deposit checks through traditional or mobile banking whenever it’s convenient.
Record-keeping: Both the check giver and receiver have a transaction record, which helps you keep track of your finances.
Personalization: Checks allow for a personal note in the memo, making the gift more memorable.

Cons

Cashing fees: Recipients without bank accounts might face fees for cashing a check, reducing the net amount they receive.
Risk of overdraft fees: If your account doesn’t have enough money when the check is cashed, it could result in overdraft fees or a returned payment.
Expiration concerns: Checks may become invalid if not cashed within six months.
Loss or theft: While checks are more secure than cash, they are still susceptible to loss and theft.
Delayed fund access: Immediate access to funds can vary. Typically, the first $275 must be available the next business day, with the remainder generally available on the second business day (subject to permissible hold exceptions).

2. Cash

Gifting cash is one of the most direct and universally appreciated gifts. It eliminates complications common with other forms of payment. Whether for a birthday, a holiday gift, or just a way to show appreciation, cash ensures the recipient can use your gift as they see fit.

Here are the advantages and drawbacks to consider:

Pros

Immediate use: Cash can be used right away, which is convenient.
Universal appeal: Cash is ideal for people of any age, including children who are learning about the concept of money and its value.

Cons

Security risks: Mailing cash is risky due to potential theft or loss.
Accessibility issues: Getting cash typically requires visiting a bank or ATM, which might not be convenient for all recipients.
Deposit necessities: If not spent, cash needs to be deposited in a bank, requiring an extra step for those who prefer or need to manage their finances through a bank account.
Limited acceptance: Some transactions require non-cash payment methods, limiting where and how cash can be used.

3. Gift card

Gift cards are an increasingly popular method for gifting money, combining the flexibility of cash with a more personal touch. You can pick them based on the interests of the person you’re buying them for, providing a thoughtful alternative to cash or checks.

Here are the advantages and drawbacks to consider:

Pros

Festive and personal: More personalized than cash, gift cards can feel like a thoughtful gift.
Broad availability: Available from thousands of physical and online retailers.
Flexibility: Can be regifted or sold if the recipient prefers something else.
Tax exemptions: Gift cards are often exempt from sales tax at the time of purchase.
Savings opportunities: Gift cards may be available at a discount, offering more value than the actual cost.
No bank needed: Gift cards are accessible even to people without bank accounts.

Cons

Fees: Some prepaid cards come with activation, maintenance, or non-use fees.
Expiration dates: Although legally valid for at least five years, gift cards can expire thereafter, which may limit how long the recipient can use the card.
Potential waste: Unused balances can lead to wasted money.
Risk of loss: Like cash, gift cards are susceptible to loss or theft.
Zero-balance risk: There’s a chance of buying or receiving a card that has been fraudulently depleted of funds.

4. Bank transfer

Bank transfers are an efficient and modern way to gift money, particularly for transferring larger sums securely. They’re especially useful for significant amounts, such as helping with a down payment on a home, contributing to major life events, or supporting someone’s education.

Here are the advantages and drawbacks to consider:

Pros

• High transfer limits: Ideal for sending large sums of money, which is often necessary for significant gifts or financial support.
• Security: Bank transfers use advanced security protocols and data encryption to ensure a safe transaction.
• Speed: Bank transfers often occur instantly, making them especially useful for international gifts.

Cons

• Transfer fees: Some banks charge fees for sending or receiving money, especially for international transfers.
• Processing time: While faster than many alternatives, some forms of bank transfers, like ACH transfers, can still take several business days to complete.
• Cancellation difficulties: A bank transfer can be challenging to cancel once initiated, particularly if the recipient’s details are incorrect.
• Daily limits: Many financial institutions impose daily transfer limits, which could be restrictive depending on the amount you wish to send.

5. Payment apps

In recent years, peer-to-peer payment apps have revolutionized how we send and receive money, making them a fantastic option for gifting. These apps offer the convenience of sending money instantly from your smartphone, which means you can gift at a moment’s notice – perfect for last-minute presents or when you can’t be with someone in person.

Here are the advantages and drawbacks to consider:

Pros

• Instant access: Recipients often get immediate access to the funds, which they can use right away without any delays.
• Convenience: Money can be sent from anywhere, at any time, from a smartphone, computer, or other devices.
• User-friendly: Payment apps are generally easy to use, with straightforward interfaces that make sending and receiving money simple.

Cons

• Fees for instant transfers: Some apps charge fees for instant access to transferred funds, which might reduce the overall amount the recipient receives.
• App requirement: Both the sender and recipient may need to use the same app. Additionally, the recipient often must have an account set up to receive funds.
• Risk of error: Sending money to the wrong recipient can make it difficult to get the funds back into the right account.

Checks remain a popular and reliable method for gifting money, offering a great blend of tradition and practicality. They provide a secure alternative to carrying large amounts of cash and allow for a personal touch, like a heartfelt note in the memo line, making them especially suitable for occasions like weddings, graduations, and significant milestones.

Gifting money through a check can also offer tax benefits. You can gift up to $18,000 per year (as of this year) to another person without incurring taxes or needing to report the gift to the IRS.¹ This exclusion means checks can efficiently transfer wealth or support someone’s financial goals without a tax burden.

Pros

• Security: Checks are less risky to mail than cash. If lost or stolen, checks can be stopped and reissued.
• Convenience: Recipients can deposit checks through traditional or mobile banking whenever it’s convenient.
• Record-keeping: Both giver and receiver have a transaction record, which helps you keep track of your finances.
• Personalization: Checks allow for a personal note in the memo, making the gift more memorable.

Cons

• Cashing fees: Recipients without bank accounts might face fees for cashing a check, reducing the net amount received.
• Risk of overdraft fees: If recipients delay cashing a check, they may face overdraft fees if their account balance is insufficient to cover the check’s value.
• Expiration concerns: Checks may become invalid if not cashed within six months.²
• Loss or theft: While checks are more secure than cash, they are still susceptible to loss and theft.
• Delayed fund access: Immediate access to funds can vary; typically, only $200 is available the next business day, with the remainder subject to bank processing times.³

Creative presentation methods like money cakes, origami, bouquets, and scavenger hunts turn simple cash into memorable gifts the recipient will enjoy opening.

Here’s a quick guide to match some of the following presentation styles with the right special occasion:

6. Money cake

Construct a decorative “cake” made entirely of rolled or folded bills, similar to this example. This “cake” can be a festive and visually impressive way to gift money, especially for birthdays or graduations.

7. Money bouquet

Create a beautiful arrangement using rolled bills as “flowers” with a vase or pot. You can mix them with real or silk flowers for a fuller look that doubles as a centerpiece.

8. Money tree

Attach bills to tree branches or create a decorative tree using folded money as leaves. This works well for weddings or housewarmings as a symbol of prosperity.

9. Money lei

You can create a gift that’s perfect for graduations by folding bills accordion-style and stringing them together with ribbon or beads. It’s a celebratory way to wear your gift.

10. Money origami

Fold bills into creative shapes like hearts, flowers, butterflies, or graduation caps to transform cash into a small piece of art.

11. Tissue box surprise

Fill a tissue box with bills so that pulling one bill leads to the next, creating a continuous stream of cash. It’s a playful and unexpected way to give money that guarantees a smile.

12. Scavenger hunt

Hide money around your home or a chosen location and create clues leading the recipient on a scavenger hunt. Each clue leads to a small amount of money, culminating in a final, larger sum.

13. Money bag

Pack a small bag or pouch with coins and bills, mimicking a treasure bag. This is particularly fun for themed parties or as a whimsical gift for children.

14. Cash-filled balloon

Roll bills inside balloons before inflating them. The recipient has to pop the balloons to reveal the cash, adding a burst of excitement to the gift.

15. Money frame

Frame bills in a shadow box with a meaningful message or photo. It serves as a decoration until they decide to open it and use the funds.

16. Money pizza box

Arrange bills in a circle inside a clean pizza box with a note saying, “It’s all about the dough!” It’s a humorous delivery for teenagers or college students.

17. Cash piñata

Fill a piñata with bills and coins instead of just candy. It’s a hit for parties where everyone can cheer on the recipient.

18. Fortune cookie money

Carefully remove the paper fortune from a cookie and replace it with a tightly folded bill and a personalized message. It’s a sweet surprise for a dinner celebration.

19. Money wreath

Roll bills and attach them to a wreath form with ribbon. This makes for a festive holiday gift or a unique door decoration.

20. Money jar with candy

Place a cardboard tube inside a jar to hold the bills, then fill the space around it with the recipient’s favorite candy. They see the treats first, then find the cash hidden inside.

21. Money umbrella

Attach bills to the inside spokes of a small umbrella with string. When they open it, they’re showered with cash – perfect for a “rainy day” fund.

22. Money book

Hollow out an old book or use a book-style box to hide cash inside. It’s a great option for book lovers who appreciate a secret stash.

Beyond cash and checks, investment-based gifts like stocks, 529 contributions, and cryptocurrency can help recipients build long-term financial security.

23. Stocks

Gifting stocks can help someone start or expand their investment portfolio, potentially providing long-term financial benefits.

24. Cryptocurrency

Cryptocurrencies like Bitcoin or Ethereum can be an exciting and trendy gift for those interested in digital assets.

25. ETFs

Exchange-traded funds offer a more diversified approach than individual stocks and are an excellent gift for those looking to invest without picking specific stocks.

26. Charitable contributions:

Donating to a charity in someone’s name is an ideal gift for those who prefer to support a cause they care about rather than receive material items.

27. Silver or gold

Precious metals like silver and gold have their own value and can help protect against rising prices, making them a thoughtful and long-lasting gift.

28. NFTs

Non-fungible tokens, or NFTs, can be an especially unique gift for the art lover or digital enthusiast in your life.

29. 529 Contributions

Contributing to a 529 college savings plan is a perfect way to invest in a child’s or grandchild’s future education.

30. CDs or savings account transfer

Placing money in a CD or savings account for someone else provides them with a risk-free investment that can grow over time, ideal for future financial planning.

The thought you put into how you give money matters just as much as the amount. Matching your delivery method to the occasion and your relationship with the recipient transforms a simple financial gift into a meaningful gesture they’ll remember. Your gift could also go a long way toward helping them achieve their financial goals.