Refiner’s Gold

Episode 2:

Gift Patterns Change with Customer Age Group

Gift Patterns Change with Customer Age Group

In episode 1 of Refiner’s Gold, we asked you why a “Gift In” transaction – a large cash deposit explained by the customer as a gift – is $15k on average, while a “Gift Out” transaction – customer draws a large amount of cash and explains it’s intended as a gift to someone else – is $40k on average.

It’s a bit of a mystery, isn’t it? Common sense says that for every gift received there’s a gift given, so isn’t the amount supposed to be more or less the same?

​Well, we left out an important fact: we’re not talking about the same customer in both cases. In fact, the population of customers receiving a gift is very different when compared to the population of customers giving a gift, and the #1 feature explaining the variance is: customer age.

​44 is the median customer age for receiving a gift. This means half of the customers providing a “Gift In” explanation are under 44, and half are over 44. Note that we’re not talking about, say, a $50 gift. These are sizeable gifts that are given because the family needs it – the average amount is $15k for a received gift.​

But the median customer age for giving a gift is quite different – it’s 72. By the time a customer is 72 years old, they’ve amassed money that can help their children or grandchildren’s families in times of need. The average amount for a gift given is $40k.​

These stats were for receiving or handing out a gift. If you had to guess, which of two – 44 or 72 – happens to be also the median age for real estate related transactions? Stay tuned for answers to this question and more in future episodes of Refiner’s Gold. 

Receive more episodes to your inbox