How would you gift money?

[ilovedolphins]

I can't decide how to gift a small amount of money to my kids. This may be a no brainer but I was trying to decide which way my money would work best for me. Besides just keeping it all.

I want to give my adult daughter who just bought a new house some money. I don't have a set amount yet but I was given about $700 for Christmas and couldn't decide whether to just give her that amount in a lump sum or whether to put that in my taxable account and then throughout the year give her the dividends I receive from that amount and my other stocks to equal around that amount.  If I give her the amount throughout the year she could use it for other things that may come up later in the year.

It may not be that big of a deal but I was just trying to see if there was a way that would still earn me money and give her money also.

[Ombud]

Cash.

[ilovedolphins]

I figured I would give her cash but just can't decide if I should give it to her in one lump sum or smaller amounts throughout the year. It probably really doesn't matter either way.

[Deleted]

Depends on your daughter.  Will she just run out and blow it all, or be sensible with it.  If she runs out and blows it all, I would recommend giving it to her in increments during the year as things come up for her.

I say this from experience of my parents gifting us girls about 15 years ago.  Neither of the others could hold onto it for more than two minutes.  I still have mine, and it continues to pay dividends.

[busymom]

JMHO, I would give it out in smaller increments during the year.  But, that's me...   (By the way, put the first installment in a box with a big bow on the top.)

[Shooby]

What will you do the rest of the year? Do you routinely pick things up for her? And, do you need the money? I would just give her whatever cash gift that you want to give as a GIFT and it is hers to do as she pleases. I think she should be beyond the point of having to "dole" out money as an adult . It's a gift. It's hers. She can blow it on whatever she wants. And, give what you WANT to give. If you think that is excessive then don't give her that much. Your choice. But, once it's hers, it's hers.

[cronewitch]

If a Christmas gift just give it to her. If you are trying to help her with her new house do a hardware store gift card. If helping with the new house I would gift $100 cash for Christmas then wait until she is settled in to gift the rest. In 3 months she will have a long list of wants like a lawnmower that she doesn't want at first, gifting right away she might just buy one high priced decoration.
My niece just got a house and her husband already wants a fence, work shop and she wants to paint the outside next summer and he wants a riding mower. I would guess she already wants new furniture and blinds and art work after living with what they have a few months they will see what is important. They already got an Irish Setter puppy so probably the fence but they really need to make a couple of house payments before improving the house.

[Deleted]

It does matter. A Christmas gift that is doled out through out the year is not a Christmas gift. I would be insulted if my parents did the doling out thing.

[Shooby]

My kids are 18, 16, and 13. And, I told them I am done trying to figure out their lives for them. They can do that themselves. It's your life. Own your choices. Yeah, of course if they want my advice I will give it and I will help them to the extent that they help themselves. But, I can't lie awake every night worrying that they might do some stupid things with money or eat the wrong foods or show up late for their job at Burger king or whatever. It's up to YOU to do what you need to do. And, if they are being stupid with money, then I don't have to fund that. If I give them money as a gift and they want to buy an xbox game then so be it. If I give them money with conditions, then they better follow the conditions (aka gas money) or the bank of Mom is closed.

[swamp]

I'd just give her cash.

My parents give me $500 each year. So far, I haven't done anything dumb with it.

[ilovedolphins]

It wouldn't be a Christmas gift per say. I got the money for a Christmas bonus and I don't necessarily need it and they don't necessarily need it either. I just wanted to gift them a little something to do whatever they want to with. My daughter is the saving kind so I know she will spend it on the house or whatever else they need. I don't care what they spend it on.

My dad gives me money for no reason and I give my kids money for no reason. Just the way it has always been.

They are having a house built for them so they will have to do the concrete work, landscaping, and fence.

[Deleted]

Your daughter sounds like a sensible gal (unlike my family members).  Given that, I change my vote to just giving it to her!

[alabamagal]

Cash (but in check form!)

My mom sends us $100 each for XMas in cash. She would send it in the mail for all 5 of us, so $500 cash in the mail.  I am always nervous until I get in in hang becuase we have had mail stolen from our box before. I always hint that we are not a cash family.  I usually take all of it and deposit it and spend it on debit card.

If you want to give, be generous and give a check.  Putting $700 in an account and then sending $10 a month dividend seems kind of foolish and controlling.

[vonna]

If my intent was to gift $700, I would gift it all at once. 

I just think splitting it up into smaller amounts would result in it being easier to piss the gift away on everyday needs/wants.

A larger amount is more apt to be used for something "larger."

[Deleted]

How much in dividends would you earn in a year on $700 anyhow?  It seems like you'd be just giving her a few bucks now and then.

[zibazinski]

Considering the amount, all at once.

[gooddecisions]

My dad usually gives me a really nice gift for Christmas- an item between $500-$2000. The year I bought a house, he gave me $5000 cash to help with closing costs/down payment/moving expenses. The following year he told me he wanted to get me something for the house and asked me what I wanted. I had a long list of things in my mind, but the thing I wanted and didn't "need" was a storm door. I priced them and one would be a little less than $300 installed. He sent me $300 and I immediately ordered the storm door and took a picture to send him when it was installed. I was thrilled and he was happy because I used the cash for something I wanted for the house that I probably never would have done if it wasn't ear marked.

You could just ask what they really want and send them cash in that value. If it's less than $700, maybe set the rest aside to do something nice this summer. I would think it would be very difficult to earn much money on a $700 investment.