When the holiday season approaches, millions of Americans begin buying gifts for their loved ones (if they haven’t already started). Even if you don’t celebrate, you may still want to purchase a gift for someone (or for yourself). But inflation, recession fears, ongoing supply chain issues, and labor shortages may dampen the spirit of gifting and make buying gifts more difficult and costly than before.
Stocks
Stocks are a more common financial gift, and they are a great option if you want to help a friend or family member start investing at a time when the markets are down. Although it may seem counterintuitive to buy stocks in a bear market, the down market is the best time to acquire assets at a discount and benefit from gains when the markets turn around.
Bonds
Give your loved ones the gift of making money in a high inflation environment with I series savings bonds. As inflation rises, the yield on I bonds also increases, so your gift has a built-in hedge against inflation. (Please note that you cannot give inflation-protected securities like TIPS as a gift.)
Cryptocurrency
Although the value of Bitcoin has dropped from its record highs, if someone in your family wishes to add cryptocurrency to their portfolio, this is a great opportunity to get some at a much lower price. Additionally, there are many digital currencies to choose from, ensuring that it will make anyone on your list happy.
Credit Card Points
Not sure what to gift? Let your loved ones choose their own adventure by giving them some unused credit card points that they can use to pay for airline tickets, hotel rooms, gift cards, or food delivery.
Bonds
If you have a lower risk appetite, that doesn’t mean you can’t benefit from market gains. Bonds are a great option if you want to help others get involved in the market, but you do not want high-risk investments like stocks or cryptocurrencies.
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Sources: The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts in our articles. Read our editorial process to learn more about how we verify facts and maintain the accuracy, reliability, and quality of our content.
U.S. Bureau of Labor Statistics. “Consumer prices rise 9.1 percent for the year ending June 2022, the largest increase in 40 years.”
Source: https://www.thebalancemoney.com/digital-money-gift-guide-5207879
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