How to give money so it isn't gone by Monday

How you hand money over decides how quickly it melts away. Cash is the most personal and the fastest spent; an investment is the slowest and the most distant. Each route suits something different.

Money doesn't vanish because the recipient is careless; it vanishes because it has no name. An amount with no purpose blends into pocket money, and a few days later nobody knows where it went. This approach helps.

An investment account is worth it when three things are true at once: the amount is more than the child would sensibly spend in one go, they won't need the money for at least five and more likely ten years, and someone (a parent or you) is willing to keep an eye on where it goes. The typical case is a christening or birth gift that is meant to wait until adulthood — the topic is also covered in Christening gifts: who gives what and how to avoid doubling up.

For a child under 18, the investment account or fund is usually opened by a parent on the child's behalf. A grandparent or godparent generally can't open one for someone else's child on their own, but they can pay money into it — just agree on the account details with the parents. The money belongs to the child; the parents look after it for them and shouldn't treat it as their own.

Investing doesn't suit money the child needs within two years, small amounts (fees eat into them), or situations where nobody knows who will manage the account. That kind of money is better off in a savings account or in an envelope with a clear goal.

One more thing people overlook: an investment account is invisible to a child. If you don't give them something tangible with it, in ten years they won't know who the money came from. So an investment deserves a keepsake note or a letter — perhaps in a time capsule they open on the day you hand the account over.

An 18th is a turning point: from the birthday on, they can manage the money themselves, so the present can no longer be "locked away". That makes how you hand it over matter all the more.

A note with money doesn't have to be long. It should say who it's from, what it's for and why now. Here are some lines you can copy or adapt. If you address the card by name, the Australian Government Style Manual adds 's even when the name ends in s: "For Thomas's birthday".

For an ordinary present you don't need to worry about paperwork. A birthday or christening gift from family or a godparent is a normal family gesture, not a business deal. If you're handing over a genuinely large sum, check the current rules with an accountant or tax adviser first rather than relying on what someone remembers.

With very large amounts, a simple written record is still worth having: it lets the recipient show where the money came from, for example when they deposit it at the bank or put it towards a home. A short document with both names, the amount, the date and signatures is enough; for a child, a parent signs.

If you'd like to add something that stays after the money is spent, a personal card or a book dedication does the job. A personalised book with the recipient as the main hero carries the dedication right on the first page — it's usually ready online within 15 minutes and costs A$11.99.