A survey of 1,000 parents with children aged between five and 11 revealed that six in 10 would prefer their kids to receive cash for their birthday.
Over a third (36%) favour cash gifts as their homes are already filled with unused toys, while 49% believe it allows their children to purchase something they genuinely want.
A fifth of those giving gifts fear being labelled ‘lazy’ if they opt for cash instead of a physical present, with 48% concerned it might be seen as a last-minute choice.
Interestingly, over a third think cash gifts can help reduce clutter at home, and another third view it as the perfect gift as it can cover experiences or days out.
Ross Borkett, banking director at Post Office, which commissioned the research, commented: “The last thing parents want is more clutter. Anyone with kids will know that their bedrooms are often full to the brim with toys that haven’t been used in months, either because flashier new ones have come along, or they’ve simply outgrown them.
“In fact, the average child will receive 84 birthday presents from their friends between the ages of five and 11, which adds up to a lot of toys that could be heading for landfill. Receiving cash is much easier for parents: they have fewer toys to store, and their children can use the money to buy something they really want and learn valuable skills such as how to budget.”
The research conducted via OnePoll revealed that 64% of children feel ‘happy’ and 49% ‘excited’ when they receive money.
Eight year old Betsy Shaw from Cardiff shared: “I feel so excited when I get money for my birthday, so I can go to the shops and pick out what I want. I always have a list of things I’m saving for, so sometimes I can spend it straight away, and sometimes I have to wait, like for a PlayStation game. Having my own money makes me feel grown up.”
On average, a child will receive around £55 per birthday, with 84% of parents giving their own kids cash when the big day arrives. Three quarters see it as an opportunity to educate their children about the value of money, with 69% starting financial education as young as five.
Three in 10 youngsters wisely adopt a ‘spend some, save some’ mindset, while 12% will immediately splurge their windfall on toys or games.
Ross further commented: “While toys can bring immediate joy, they often have a short lifespan in terms of interest and usability. Cash, on the other hand, offers flexibility, supports financial education, and gives children the gift of choice, so they can buy something they really want.
“At Post Office customers can get free cash withdrawals and parents can deposit cash at their branch too if their kids receive it for their birthday.”
Leading etiquette expert and tutor Jo Bryant has said: “Brits can often feel uncomfortable when it comes to talking about money, so it’s no wonder some people may worry that cash is a lazy present.
“However, the etiquette around gifting cash has seen a major shift in recent years, with many parents now preferring that their children receive money. It’s best to give notes, as coins can be inconvenient.”
“To ensure a monetary gift is well received, include a handwritten note in the card telling them to buy something they really want and check the amount of cash matches what you’d typically spend on a gift. Ensure your child writes a thank-you letter explaining how they used the money it not only shows appreciation, but allows the gift-giver to see the impact of their present.”
