Economists have long argued that cashMoney in physical form such as banknotes and coins. More is the most efficient gift. Research by Joel Waldfogel shows that physical gifts lose 10% to 33% of their value the moment they’re unwrapped. That’s because what you think is perfect might not match the recipient’s tastes. Cash, on the other hand, transfers value perfectly—no guesswork, no waste.
The numbers are stark: Holiday spending makes up about 20% of annual retail sales, yet much of it is inefficient. According to PwC’s 2025 Holiday Outlook, US consumers plan to spend 5% less this year, with Gen Z cutting budgets by 23%. For many, especially younger generations facing financial strain, cash isn’t just practical—it’s a lifeline.
Cash gifts also avoid deadweight loss, packaging waste, environmental harm, and the hassle of returns, regifting, or reselling.
There’s no denying the emotional appeal of a beautifully wrapped gift. It symbolizes effort, care, and personal connection. But how many of those gifts end up collecting dust, being regifted, or sold online?
Surveys show that nearly 1 in 3 people resell unwanted gifts, turning holiday generosity into a booming resale market. Platforms and marketplaces make it easier than ever to offload unwanted items—proof that traditional gifting often misses the mark. Cash, however, empowers recipients to choose what they truly want or need, whether it’s a new gadget, a gym membership, or help with bills. A 2025 AP-NORC survey found that 72% of US adults now consider cash an acceptable holiday gift, signaling a shift in attitudes.
Cash is also the ultimate in sustainability: no packaging waste or single-use plastics, lower carbon footprint compared to producing and shipping physical goods, and alignment with growing consumer demand for mindful, eco-friendly choices. December has become one of the most environmentally damaging months across the world.
When time is short and stress is high, cash in a card is the ultimate solution. It’s quick, easy, and avoids the chaos of crowded stores and shipping deadlines. Younger generations, in particular, appreciate the flexibility and autonomy of cash gifts. There are no expiration dates, no store restrictions—just the freedom to use the moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More as they see fit.
Gift-giving is a complex mix of economics, emotion, culture, and environmental impact. Cash offers unmatched convenience, efficiency, and sustainability, but some may still see it as impersonal. Physical gifts carry emotional weight and tradition, but risk mismatch and waste.