As more Americans turn to the stock market to turn a profit on their earnings, a poll has shown that around 65% of them would also like to receive stock or cryptocurrency as a gift this holiday season, with the test group containing 2000 adults.
Moreover, nearly a third of them replied that they would much prefer an investment over a gift card, with books and treats taking an even lower position on everyone’s list.
Ismat Mangla, director of content at LendingTree stated that people have begun spending more of their time thinking about money, be that for better or for worse, but agrees that a gift that increases in value over time does seem attractive.
If you’re looking to buy a sort of financial gift for a younger person, it has never been simpler, requiring only a brokerage account to be made for their child or another minor that they’re custodians of.
Stock is a great way to introduce a teen to investing and show them the incremental value of it as time passes, teaching them how to save, earn and spend all at once.
When the child in question turns 18 or 21 in certain states, they will then gain full control over all their money and assets, and with proper guidance, they will continue to invest and spend it wisely.
The digital currency as a gift
Another growing trend is gifting cryptocurrency, with Bitcoin and Ethereum taking center stage as per usual.
Coinbase, CashApp, and Robinhood all allow their users to gift different crypto to other users through e-mail gift cards, extending even to friends who don’t have an account set-up, requiring them only to set up an online wallet to store the currency in.
Naturally, with crypto being as volatile as it is, gifting it can be a bit risky, but win or lose, it still presents your friend with entry-level knowledge of crypto, possibly interesting them into investing in it on their own in the future.
When donating or gifting stock, a few other things do pop up though, regarding both you and the person on the receiving end of the gift.
While it’s beneficial to give away stock as a means of avoiding capital tax gain payments, know that a potential tax is passed onto whoever is receiving the stock, which is only positive if the person is in a lower tax bracket.
Additionally, gifting over $15k a year requires mountains of paperwork with the IRS so maybe cut back on the presents if you’re reaching that threshold, or at least consult with a financial advisor before you continue.
Overall, the concept of gifting stock this holiday season is fascinating and speaks volumes about how people’s relationships with their money are evolving. It seems that many people would much rather invest than spend on one-time-use items, so if you’re looking to give someone a gift that keeps giving back, stocks or cryptocurrency make for a great choice. Just don’t forget to do your research first!