Christmas has certainly come early this year. Especially since shops such as Tesco are spreading their Christmas cheer early by offering great discounts and sales to encourage shoppers through their doors. Tesco recently announced a 50% off Christmas sale while stores like Woolworths are offering prezzies at great knock down prices.

 

However, there is another side to all this, perhaps a side many would like to forget about if only for the holidays. It’s that stores like Tesco are worried that people will not buy this year due to the financial troubles hitting the British shores. As for Woolies, the iconic British store, may soon be no more as its administrators fail to find a suitable buyer. It’s undeniable that the current state of the economy has impacted everyone, so for this year you may be thinking about giving a financial gift, something that your loved ones can use far after Christmas has come and gone. But what are the options? Here are some ideas.

The most obvious of financial gifts are gift vouchers. However, a voucher although a good present will not last very long and will not grow in value over the long term. If your looking for an investment it might be worthwhile opening a savings account or even an ISA (as long as they don’t already have one) for a loved one. Of course this wouldn’t be much of a surprise as they would have to sign the paperwork but some banks are offering some good rates in today’s climate especially if the money can be locked for a certain period in time.

Alternatively, you can opt for an investment perhaps governement bonds or for the more adventurous an investment trust or shares, some of which are trading at a relative discount to where they were a year ago.

If you are buying a present for a small child why not put some money into a Child Trust Fund which can only be accessed when the child comes of age - or alternatively you can kick start the child’s pension fund which will certainly accumulate value over the years.
Certainly, food for thought this Christmas. If you are thinking of financial present do seek professional advice in order to match the product to your and the beneficiaries individual circumstances. Happy Holidays.