Not Another Sweater!? Convenience is the No. 1 Reason That Monetary Gifts -- Cash, Cards, CDs and Even Crypto -- were Popular Gift from Parents and Grandparents, CD Valet Survey Reports

Tech-Delivered Thank You Notes Suffice, But Grandma Prefers a Visit, Phone Call or Handwritten Note

SEATTLE, Jan. 9, 2025 /PRNewswire/ -- Nearly three-quarters (72%) of parents and grandparents give the gift of green during the holiday season - whether it be cash, check, gift card or investment – because it is an easy and convenient gift that avoids unwanted returns for family members, according to a survey conducted by YouGov for CD Valet.

"Traditionally, giving money was seen as an impersonal and even lazy holiday gift," said Mary Grace Roske, Head of Marketing for CD Valet. "Those days are gone, as their ease and flexibility make financial gifts high on everyone's list to give and receive," she said, adding that while less common than cash and gift cards, investments are recognized as a way to give a gift that grows in value.

The top reasons given by parents and grandparents surveyed for why they've given monetary gifts are convenience/ease (66%), avoiding unwanted gifts/returns (45%) and recipient has immediate financial needs (28%). For this group, monetary gifts (72%) top personal technology gifts (55%).  Clothing and toys/games remain most popular, with 82% percent of parents and grandparents reporting that these are their go-to gifts during the holidays. 

Spend Now Gifts vs. Investments (Including Crypto)

Cash or check is the most popular financial gift, followed by gift cards and investments.  The most common gift amount is under $100 (43%), but one percent of respondents report making cash gifts of $2,500 or more. Seventy-six percent of respondents who gave gift cards chose retail brand cards, followed by prepaid debit cards (67%) issued by a credit card company such as Visa. More than half (52%) of the gift cards had value of less than $100 and nearly three in 10 (28%) were between $100 and $250.

The majority of monetary gifts are for the here and now, with only 32 percent of respondents focusing on longer-term financial investments. When gifting investments, 55% of parents and grandparents who have done so said contributing to the future financial security of family members was the primary motivation. Forty-three percent 43% aim to educate their family about investing and financial planning. Tax benefits and federal tax-allowable gifts to family are a factor for 25% of participants, while 18% consider estate planning as a reason.

The tried-and-true savings bonds are the investment of choice for 42% of investment gift givers, while 29% have contributed to 529 College Savings Plans. Equities or stocks were selected by 22%, and 14% opted for cryptocurrency.

Notably, 25% of participants highlighted Certificates of Deposit (CDs) as a preferred investment gift. CDs are particularly appealing due to their low risk and predictable returns, making them an excellent choice for securing the financial future of children and grandchildren. "CDs' popularity has grown in recent years," said Roske. "Higher interest rates have delivered savers better returns and given that federal deposit insurance safeguards the risk to principal, CDs make an ideal financial gift."

Generosity Comes with Strings Attached -- Sometimes

Monetary gifts often come with strings attached. Among respondents who have given investments, 37% have specified that the funds be used for educational purposes, while 19% have earmarked them for housing and 16% for debt reduction. Additionally, 33% of respondents impose age-related restrictions, ensuring the recipient cannot access the funds until reaching a certain age. Nearly four in 10 (39%) of participants reported never placing any restrictions on investments.  

"Paying up for rent or a mortgage while trying to pay down your debt is the double whammy facing a lot of young adults and families," Roske noted, "so it's not surprising that a third of financial gifts are earmarked for these two areas."

Expecting a Thank You Note/Text/Call? Don't Hold Your Breath

Expressing gratitude is perhaps an art in need of greater practice amongst children and grandchildren, according to survey results.  Among parents, 40% always receive a thank you, while 19% often do, and 18% sometimes do. However, 15% of parents never receive any form of thanks. Grandparents fare worse, however, with 34% always receiving a thank you, 32% saying they often or sometimes do, but a notable 24% never getting any acknowledgment.

When it comes to preferred ways of receiving thanks, traditional methods are favored: 20% of parents and grandparents prefer voice calls and 14% prefer handwritten notes. While technology-driven channels like texts (9%) and video calls (6%) are acceptable, they are less preferred. Interestingly, 32% are open to any form of acknowledgment, and 9% do not expect a thank you message at all.

The research which was conducted by YouGov. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3286 adults. Fieldwork was undertaken between 18th - 23rd December 2024. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+). YouGov conducts polls on the Internet about politics, public affairs, products, brands and other topics of general interest. YouGov polls are taken by people, from all over the nation, who have agreed to share their thoughts on a wide variety of important issues.

CD Valet is an online marketplace connecting consumers with financial institutions to compare and open Certificates of Deposits (CD) with the most competitive rates and terms nationwide. Unlike other rate comparison sites, CD Valet shows the most competitive rates from financial institutions across the nation, from the smallest credit unions and community banks to the largest nationwide and internet banks. With daily rate updates and earnings calculators, CD Valet gives consumers comprehensive data and free tools to help them find the right CD to meet their savings goals. CD Valet, LLC is a wholly owned subsidiary of Seattle Bancshares, Inc. Visit CDValet.com

SOURCE CD Valet