A survey of 1,000 parents with children aged 5-11 found that 6 in 10 would prefer their kids to receive cash on their birthday instead of physical gifts, with many children agreeing too.
Many parents see cash as a practical solution to reduce clutter and waste, with over a third believing it can help eliminate unnecessary physical items. Additionally, a third of parents think cash is an ideal gift as it can be used to fund experiences and outings.
Ross Borkett, banking director at Post Office, which commissioned the study, 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.”
Some gift-givers are hesitant to give cash, fearing it might be seen as a lazy or last-minute option. However the study revealed that 64% of children feel ‘happy’ and 49% ‘excited’ when they do receive money.
Eight year old Betsy Shaw from Cardiff expressed: “I feel so excited when I get money for my birthday, so I can go to the shops and pick out what I want. “
(Image: Post Office)
She says: “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.”
Three quarters of parents utilise cash gifts as an educational opportunity to teach their offspring about the value of money, with 69% initiating financial education as early as five years old.
A sensible 30% of youngsters adopt a ‘spend some, save some’ mentality, while 12% will immediately splurge their newfound wealth on toys or games.
Ross 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.”
Leading manners guru and instructor Jo Bryant stated: “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.”