Money Saving Monday: How to make the most of your holiday cash

SPOKANE, Wash – One gift that won’t get returned to the store this year is that card full of cash. Will you save it, spend it, or share it?

“Often times people gift cash, cold hard cash, who doesn’t love that,” said Kristen Piscopo, Community Impact Manager at STCU.

Piscopo offered tips for how to make the most of your financial gift, starting with beware of fraud.

“If your sister or your grandma or your child is asking for money and they’re asking for it in a way that seems a little suspicious, maybe a text message or an email, always think twice about that,” Piscopo said.

One option to securely build savings for a child or grandchild is with a savings account. Piscopo said the STCU First5 savings account is designed to teach kids good money habits.

“You earn a higher rate on the first $500 dollars, so you earn five percent on the first 500 dollars,” Piscopo said.

As kids enter teenage years, parents can consider a student checking option.

“This can be a good way for teens to start having experience with debit cards and managing their money, but these accounts will definitely have parental controls,” Piscopo said.

You may also choose to build up your investment accounts, like a 529 Savings Plan or Individual Retirement Account (IRA). But if you’re trying to start one of these accounts for someone else, Piscopo recommends having a conversation first about where you want the money to go.

“Even if you’re clear with a purpose, if you’re giving cash or a check, keep in mind that that could be used for anything,” Piscopo said.