A financial planner's guide to gifting

Recent research conducted by the Financial Association of Australia found that 61% of us prefer others celebrate our birthdays by spending quality time with us. We next want an experience together (39%) before wanting a tangible gift or cash gift (30%).

Does this surprise you? Turns out “they’ll appreciate your time and effort more than the gift” isn’t such a far fetched statement.

So the next time you want to celebrate a friend or loved one’s birthday, consider giving the precious gift of your presence rather than presents.

Want to give a physical gift anyway? Here are three tips to help you give more conscious gifts:

1. Get involved in the circular economy:

Find one-of-a-kind gifts or vintage treasures at an op-shop! Here's another example - you could unwrap your gifts and reuse the wrapping on the next gift you give. Or think outside the box! Japanese ‘furoshiki’ involves wrapping gifts in fabric that can be repurposed and reused.

2. Swap ‘stuff’ for time:

According to clinical psychologist and CEO of The Positivity Institute, Dr Suzy Green, shared memories provide long-term benefits for our relationships. Give the experience of art lessons, a picnic, a hike or something you both enjoying doing and can cherish the memories forever.

3. Give something that will last:

The gift of a membership, subscription or lessons will make a lasting impression on your loved one. Most Aussies (57%) say they'd like the gift of time with a financial planner.

But how do we make sure we can afford the gifts we give? Research shows that Australians spend $100 per month on gifts. That’s $1200 a year! And yet only 1 in 4 people actually budget for gifts. And we’re more likely to make spontaneous spending choices based on how close we are to the person or how special their event is.

Here are three tips to help you start budgeting for gifts!

1. Decide what you can afford:

Create a gift-giving savings account and transfer a set amount of money to it each week or fortnight.

2. Make a list (and check it twice):

Sit down and write a list of the people for whom you’ll be buying gifts throughout the year. Buy each person their gift in advance, so you’re less likely to make spontaneous overspending decisions.

3. Buy in bulk:

Plan your budget so that you know your spending limit for end of year sales. Buy your loved ones gifts for up to 70% off the regular cost! Why not?

Is there such a thing as the perfect gift?

Research by the FPA found that on average, three in five Australians (57%) would like to receive the gift of time with a financial planner who could create a plan for achieving their money and life goals, and provide peace of mind that their finances are in order.

This number goes even higher, to four in five Australians aged 18-39, with 81% of Gen Z and 76% of Gen Y.

A financial plan is a gift that keeps giving far into the future. The receiver will be sleeping well at night, knowing all of their financials are sorted. You will be gifting the feeling and knowledge of having a clear path to their money and life goals.

Sounds like the perfect gift to us!