When it comes to Christmas, many of us opt for the simplest solution: giving cash. While practical, it often gets absorbed into everyday spending and quickly forgotten.
If you’d like your gift to have a longer-lasting impact, there are innovative alternatives that still use the money you would have handed over – but in ways that could benefit your loved ones financially.
- A Superannuation Contribution
For adult children or young relatives, a personal super contribution can be an unexpected yet valuable gift. Even small amounts compound over decades, boosting their retirement savings. If they’re eligible, they may also benefit from government co-contributions or tax offsets – turning your thoughtful gift into even more.
- Education or Investment Bonds
Rather than cash, consider setting up an investment bond for a child or grandchild. It’s a tax-effective way to save for their education or future expenses, and it shows you’re thinking long-term about their security.
- Pre-Paid Services or Subscriptions
Instead of handing over cash, you might use it to pay for something they already need – like car registration, health insurance, or professional subscriptions. This frees up their own income for savings, while still giving them a very practical gift.
- Paying Down Debt
Making an extra repayment on a mortgage, credit card, or personal loan can be a huge help, especially if high interest is involved. It’s a way of using your cash gift to reduce financial stress and create breathing room.
- Contributions to a Savings or Investment Account
Helping a family member kick-start an investment portfolio or add to their savings account can encourage positive money habits and provide a foundation for future growth.
This Christmas, if you are financially able, consider stepping beyond a card with cash.
By redirecting the same funds into a super account, debt repayment, or future-focused investment, you’re giving more than money – you’re giving a head start.