Nowadays, most people are very excited and delighted to receive a gift of money. Because a gift of money allows them to spend on whatever they want and can be a great option for those who want to invest in experiences or towards financial goals in the future. So, what is a gift of money called? Is it really suitable for gift giving? This informative guide discusses the various forms of monetary gifts, outlines taxable monetary gifting rules, and suggests some creative ways to give money gifts. Well, if you are looking to give a gift of money, this post will be much needed and helpful. Find out with us now!

What Is A Gift Of Money Called?


Money is a common equivalent used to exchange goods and services. Money is universally recognized for use and is issued by the State to ensure its economic value. For example, a person can buy a piece of land with cash, can also pay via bank card or can also buy with gold or shares.

So, what is a gift of money called? A gift of money is the transfer of cash, checks, stocks or other financial instruments of liquid value from one person (one party) to another (other) without expecting anything in return.

Gift giving is a meaningful way to show your special care. In particular, giving monetary gifts shows that you care about the potential future value of the recipient (especially when giving money to children). For example, that child can use that money to invest in learning soft skills or help them have the basic foundation to study abroad.

Is It Appropriate To Give A Gift Of Money?


For some Asian countries, giving cash gifts is considered to bring good luck to the giver as well as the recipient. But for Western countries, this is seen as not very polite. So, Is it impolite and disrespectful to give money as a gift? Is it appropriate to give a gift of money? NO! In this day and age, giving a gift of money is not rude, even appropriate in many situations.

Many people think that giving money gifts is giving cash. However, in reality, there are many ways to give a gift of money. While a group of people of the older generation may find monetary gifts vulgar and impolite, traditions are changing rapidly. Most people in modern times do not consider monetary gifts rude. Just the right way to give money gifts will bring great meaning to the recipient.

What Are Good Ways To Give A Monetary Gift?


As shared about the concept of a gift of money, there are many different flexible ways to give monetary gifts. Each unique way creates different gift experiences and potential value for the recipient. What is a gift of money called? Here are the details for you!

Gifting Cash & Checks

What is a gift of money called? The simplest way to give a gift of money is to give cash or write a check. Cash can be in the form of banknotes, or money in metal (depending on the monetary policy of the country). Check is an unconditional order document of the account holder (made on a pre-printed form according to the statutory format) ordering the bank/account management organization to withdraw from his/her deposit account to pay to the person named in the check.

It is very common to give gifts of cash or checks on special occasions such as birthdays, weddings and Christmas. To keep the gift from being rude or immodest, use a nice envelope and greeting card to turn cash and checks as gifts. While cash or checks can be used for anything, these days you’ll see very few people stuffing them in their wallets. Other money gift options may be more appropriate if you want the gift to be more targeted.

Gift Cards

Another form of giving money gifts can be mentioned as giving gift cards. In recent years, gift cards are considered an increasingly popular way of giving gifts because of their practicality and courtesy. With gift cards, recipients can comfortably spend at their favorite store or location. Gift cards give recipients more options, and for those who don’t know what to buy, shopping is easier. Compared to some other monetary gifts, cash and gift cards are generally not taxed. The giver and the receiver don’t need to think about paying another tax (unless the value exceeds $16,000).

Gifting Stock

What is a gift of money called? A gift of stock is also called a gift of money. For the person receiving the gift of stock, this will have a very positive impact both financially and educationally for that person. Besides the great advantages, giving stocks to others is not a simple process. The giver and the receiver will need to set up a brokerage account, and the giver may need the recipient’s sensitive personal information. 

In addition, a gift of money such as stock is considered a taxable monetary gift. Depending on who owns the stock and who the recipient is, the tax rules will be different. Of course, you should talk to your financial advisor or attorney about complicated tax rules.

Pay for Medical and Education Expenses Directly

Paying for medical and education expenses directly is also a form of money gift. While it’s not as popular as other options, it’s a fun and meaningful way to give gifts. You can donate money directly to a reputable medical or educational organization. For those who need to pay for tuition, this donation will be extremely useful. Or the money can also be used to fund medical bills. For example, if you want to help someone pay for treatment or recovery from a work-related accident, you can pay the costs directly to the medical facility instead of personally.

Create a Loan with low interest

What is a gift of money called? Creating a Loan with low interest is also a form of a monetary gift that very few people know about. You want to give a gift of money to someone in difficult circumstances or a loved one who is having financial problems. However, they firmly refuse the cash, stocks or gift cards you give them. For people who have high self-esteem and do not like to receive money so pitifully, you can still help them by creating a loan with a low interest rate. Instead of borrowing from banks or credit unions with exorbitant interest rates, they can take the pressure off of borrowing your money at a more reasonable interest rate.

How To Give A Gift Of Money Creatively


Some people will consider giving money gifts a bit offensive, as it could mean that you didn’t care, take the time or effort to find them a suitable gift. However, monetary gifts have the charm and power to launch great future financial goals. With gifts of money, young couples can pay for a house in advance, children can buy a lot of books, and homeless people can have full meals, etc.

Don’t stuff a stack of money or a check that might make the recipient unhappy, confused, and slightly embarrassed. Adding an envelope or a handwritten greeting card, folding money into eye-catching shapes, giving money with another gift, money balloons or chocolate boxes of money can be creative ways to turn a dull money into a delightful gift.

Q&A About A Gift Of Money


What Is the Limit on a Monetary Gift?

There is no limit on monetary gifts. However, you may be limited if you give a certain amount or value in a given calendar year to the same recipient. In 2022, the limit on a monetary gift is $16,000/year/per person (double if the giver and the recipient are married). The lifetime limit is $12.06 million. Of course, you can give away up to $12.06 million in your lifetime without paying gift tax.

Is money also a gift?

Gone are the days when giving money or asking for money as a gift was considered rude. Studies say that money is the most welcome gift and what most people want. According to etiquette expert Elaine Swann (founder of The Swann School of Protocol), money is also an appropriate gift. A gift of money you give depends on your budget, relationship, and specific occasion. For example, you could be more generous with a beloved son or a sister who is about to graduate from college than a helpless child at Christmas, right?

When giving money as a gift, what should be said?

Be gentle, don’t make a fuss. This way, both the sender and the receiver feel comfortable. So, what to say when giving money as a gift:
+ Although life has many ups and downs, I always hope you smile happily, remember that you still have me by your side.
+ I give you a gift with all my love! Always be positive!
+ Get it because you deserve this and more.
+ Even if you are afraid to share your difficulties, I know it will help you right now
+ Wishing you comfort and joy in the married world, enjoy this little gift as you begin our new journey. I love you!

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What is a gift of money called? As discussed above, a gift of money is often found in the form of cash, checks, gift cards, stocks, a grant, or a low-interest loan. It can be a simple monetary gift like giving someone an envelope full of cash. More elaborate gifts might include giving a car or house to a loved one. No matter what kind of gift you give, there are advantages and disadvantages to consider. Before giving any gifts, you should discuss your plans with attorneys, tax and financial advisors to avoid trouble.

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