A third of parents plan to give their children money this Christmas, study finds

A third of parents (32%) plan to give their child money for Christmas this year – with a quarter saying their kids would prefer this to a physical gift.

Money ranks highly on the 2022 Christmas wish list for youngsters, falling just behind clothing, shoes, and/or accessories.

But a poll of 1,000 children and their parents found that a traditional 40% of mums and dads still prefer to give their children physical gifts at Christmas – with classic favourites like Lego, cuddly toys, and books still appearing on the wish list.

Of those who will gift their children money, only half (49%) plan to do so in physical cash – with 22% writing a cheque to their youngsters, and 40% handing over a gift card or voucher.

And a quarter of children would prefer money to physical gifts (SWNS)

Will Carmichael, CEO of NatWest Rooster Money, which commissioned the study, said: “With the range of digital options out there, the use of cash in our day-to-day lives is dropping – and that means we need to continually evolve how we engage and manage money with our children.

“Digital forms of currency are taking on a crucial and growing role, with many parents saying these are not only easier to track, but can give kids more independence.

“We can’t predict how the format of money will continue to evolve in the future – so the point here is around choice, and giving people options depending on their age and context.

“The best thing we can do is have open conversations and engage with our kids from early on, to help them grow into healthy spenders, earners, and savers.”

Of the parents who still intend to give their child a physical gift this Christmas, more than half (56%) do so because they think tangible gifts their kids can hold in their hands feel more special, while 29% believe their children understand the value of physical gifts more.

One in five (20%) even go a step further, to say that physical gifts provide their kids with a learning opportunity, while 47% think they feel more personal.

Just 12% of parents favour digital varieties – but 36% recognise the benefits of both.

Of those, two in five (41%) think digital presents give their kids more independence, and 28% see going digital as a more sustainable, less wasteful gifting option.

It also emerged that, of the parents planning to give their child money this Christmas, a more unconventional 13% plan to give their child their gift in a gaming currency, such as Robux or Minecoins, and 8% will drop some cryptocurrency into their child’s e-wallet.

Physical or virtual, Christmas 2022 won’t come cheap – with parents planning to spend an average of £251 fulfilling their child’s Christmas wish list.

But classic favourites, like books and toys, still rank highly on the wish list (Anastasiia Krivenok/Getty Images)

And the study, carried out via OnePoll, found 37% of parents claim they have used Christmas as an opportunity to teach their kids about money in the past.

Iona Bain, a personal finance expert and spokeswoman for Natwest Rooster Money, added: “We’re seeing an intriguing shift in how young people engage with and learn about money.

“This is especially true of Gen Alpha, who are growing up with so many new, digital finance tools that previous generations never had access to – from saving apps and spending cards, to digital currencies.

“While cash still proves popular with kids, Robux and other gaming currencies are now more in demand than gift cards.

“And as kids get older, they’re shifting towards things like bank transfer as their preferred means of receiving money, as they get more financially confident.

“It’s understandable that, for many parents, physical cash still plays a vital role at Christmas.

“But what’s intriguing about their cash sensibilities is that there’s also a suggestion of digital overwhelm.

“Parents want to give their children key life skills around money – and now in 2022, this means embracing both physical and digital financial tools when helping them get to grips with it all.”

THE 2022 CHRISTMAS LIST, ACCORDING TO KIDS:

1. Clothing, shoes, or accessories
2. Money (either as cash, cheque, bank transfer etc.)
3. Books
4. A games console
5. Toys
6. Tech items (iPad, Fitbit, Apple watch, laptop etc.)
7. Arts and crafts equipment
8. Smartphone
9. Sleepwear
10. Lego or other creative building toys
11. Gaming currencies
12. A gift card
13. Cuddly toys
14. Board or card games
15. Make-up/beauty products
16. Fitness/sporting equipment or kit
17. Bicycle, scooter, or skateboard
18. Costumes/dressing-up stuff
19. Subscriptions (Spotify, Netflix etc.)
20. Baking toys/equipment