With Christmas behind us, how many of you found yourselves facing the age-old dilemma of what to give your loved ones as gifts? Should we battle the crowds in the hope of finding that perfect present that will bring joy and surprise to the recipient? Or should we take a different approach and consider giving nothing at all? What could possibly go wrong with that approach?

Luckily there’s a third option. The gift of cash! While it may initially seem impersonal, there are compelling reasons why giving cash is the best gift you can give somebody on Christmas or any other occasion for that matter.

First and foremost, cash is never on backorder, never goes out of style, and is never the wrong size, color, or texture. Unlike traditional store-bought gifts, cash allows your recipient to choose exactly what they want. Cash completely eliminates the risk of purchasing something that the recipient doesn't like, didn’t need, can't use, or already has. Imagine the joy of receiving a gift that allows you to purchase that gadget you've been eyeing, the cool leather computer bag you've been longing for, or that VIP subscription to RedState you've been dreaming of.

Furthermore, cash recognizes and respects individual preferences and tastes. Each person has unique wants and needs, and no one knows these better than the individual themselves. By giving cash, we are empowering the recipient to go out and make their own choices and to truly enjoy their gift, whatever it ends up being. It also shows that we trust and value their judgment. After all, who knows better what would bring them happiness than themselves? And even if they choose to put the cash under their mattress, well, more power to them. Who needs compound interest?

Another crucial advantage of giving cash is that it eliminates the economic concept of deadweight loss, as famously discussed by economist Joel Waldfogel. Deadweight loss refers to the loss of value that occurs when a gift-giver's choice does not perfectly align with the recipient's preferences. Waldfogel demonstrated that holiday gift-giving often leads to a significant portion of the retail value of gifts being wasted. By giving cash, we avoid this wastage entirely. The recipient can use the cash to buy exactly what they want.

I’ll give you a real-world example of the risk of gift-giving. My wife sent photos to my phone a few weeks ago of a ring she wanted. You know, hint, hint. Well, as I almost always do, I waited too long to buy it for her on Amazon. I sent my stepdaughter out to the stores this past weekend to find the ring or something close to it and some of the other shiny trinkets my wife shared with me via text, including a bracelet. My stepdaughter found the bracelet, and a necklace, but not the ring. No problem. Two out of three isn’t so bad, right? Wrong! Turns out my wife only wanted the bracelet because it matched the ring. Oops! 

One might argue that giving cash lacks the personal touch and thoughtfulness associated with traditional gifts. However, this is a misconception. For example, when my wife sent me pics of the shiny new objects she wanted, I, in effect, became an order taker with no chance of a tip. Where’s the thoughtfulness in that? Giving cash can be just as thoughtful, if not more so, than selecting an item off a store shelf that somebody tells you they want. Cash shows that we respect the recipient's autonomy and individuality, allowing them to express their own unique style and preferences no matter how kooky.

Moreover, giving cash as a gift can also be practical and helpful in many situations. It can be especially valuable for those going through financial hardships or facing uncertain circumstances. Cash can provide a much-needed financial boost, allowing the recipient to address immediate needs. It can also alleviate stress and provide a sense of freedom when money is tight. In these cases, giving cash can be a truly meaningful and life-improving gesture that goes beyond the temporary joy of receiving a material gift.

My father-in-law has it all right. Every year he gives cash to all his kids, their significant others, and grandkids. And I just gotta say, my father-in-law is consistently my favorite guest at Christmas and my birthday parties. I’m almost kidding. And besides, you can get clever about how you present cash. My father-in-law puts it in a little white sealed envelope with my name written on it! For Manic Contrarian. How sweet is that?

Lastly, it is worth noting that surveys consistently show a significant number of holiday gifts being returned or exchanged each year. This reflects the mismatch between the gift-giver's choices and the recipient's preferences. By giving cash, we eliminate the need for returns and exchanges, saving both time and effort. The recipient can use the cash to purchase exactly what they want, ensuring that their gift is a perfect fit from the start.