5 Gifts to Give Yourself This Holiday Season That Will Earn You Money

No matter what holiday you celebrate, this time of year is filled with gift-giving. And while it may bring you great joy to find just the right present for each person in your life, it's important to treat yourself a little, too.

You could buy a new gadget you've been eyeing or a new pair of boots you've been coveting. But you may want to consider directing some of your funds to one of the following options that can earn you money in return.

1. Switch to a high-yield savings account

The average annual percentage yield (APY) on a savings account at a brick-and-mortar bank is 0.45%, according to the FDIC. While that's not exactly nothing, it's underwhelming. If your emergency fund is currently stored in one of these accounts, consider switching to a savings account that can earn you more.

High-yield savings accounts offer a much higher rate than the average. This year, many have hovered at or above an APY of 4.5%. That means if you have $5,000 in a regular account earning the average APY, your savings would grow by $21.04 in one year. If you had that same money tucked away in a high-yield account, you'd instead gain $229.70 by year's end.

2. Open a brokerage account

Investing can feel like an intimidating prospect, but it doesn't have to be. If you don't yet have a brokerage account, consider opening one and dipping your toes in the investing pool. There are plenty of great brokerage accounts for beginners that offer user-friendly interfaces and educational resources.

Opening an account with a stock broker gives you the opportunity to earn money on your money. You can start simple and invest in an exchange-traded fund (ETF). These funds allow you to essentially put your money into a group of stocks rather than picking out individual ones, meaning you don't have to do so much research into particular companies and can still have diversified holdings.

With the average annual return on the S&P 500 index over the past 50 years sitting at 10%, chances are good that if you invest with the long term in mind, you'll be better off financially down the road.

3. Meet a 401(k) match

If you work for a company that offers a 401(k) match, please, please do what you can to meet that match. Quite simply, this is free money, and who wants to pass that up?

Your company might match up to a certain percentage of your income, or a certain dollar amount. Whatever the policy, find out what the maximum match you can receive is and aim to contribute at least that much to your 401(k). Doing so will double your investment -- at no extra cost to you.

4. Max out an IRA

Individual retirement accounts, or IRAs, are another great way to make your money work for you. As the name implies, these savings vehicles allow you to put aside money that you can access in retirement (specifically, after age 59 ½). Money in an IRA is tax-deferred and can grow tax-free -- a benefit not afforded to money in a regular brokerage account.

You can also open a Roth IRA, which you fund with after-tax dollars. The benefit of these accounts is that you don't pay taxes when you withdraw your money in retirement.

There's an annual combined contribution limit on IRAs -- in 2023, it's $6,500 for those under age 50, and $7,500 for those 50 and older -- but they're a great option for setting aside more money and allowing it to grow.

5. Invest in furthering your education and career

Whether you choose to take a one-time class, commit to an ongoing program, or go back to school for a higher degree, spending money on your education is an excellent use of your money. Improving your knowledge base puts you in a great position for a raise at work or for a lucrative career move in the future.

If you have any interest you've wanted to pursue but are worried about the cost or the time commitment, give yourself permission to go for it. It's very likely that a small investment in your career today will pay you back generously down the road.

Think outside the tinsel-wrapped box

While the "gifts" on this list may not look like your average stocking stuffers, the benefits they can bring you will have you writing thank-you notes to yourself for years to come. Whatever your current personal finance situation, consider unwrapping one, a few, or all of these presents this holiday season.