The gift of choice: 60 per cent of parents would prefer cash gifts for their children

• Three in five parents would prefer their children to receive cash as birthday gifts.
• Despite this, only 41 per cent of children receive monetary gifts from party attendees.
• A third of parents believe cash gifts reduce clutter, and 34 per cent see them as ideal for funding experiences or days out.
• Cash gifts also serve as a financial education tool, with 76 per cent of parents using them to teach children about the value of money.
• Leading etiquette expert and etiquette tutor Jo Bryant shares tips on etiquette of gifting cash.

Three in five parents want their children to be gifted cash for their birthday.

A poll of 1,000 parents with children aged between five and 11 found despite this, the average child only receives a monetary gift from 41 per cent of birthday party attendees.

More than a third (36 per cent) would rather their little ones received cash as a gift because their homes are full of toys their children never play with, while 49 per cent prefer it so they can get something they actually want.

Despite the majority of parents favouring monetary gifts, 22 per cent fear they'd be labelled 'lazy' if they didn’t buy an actual present, with half (48 per cent) of those worried it could be viewed as a last-minute option or it seems like a lack of effort.

However, a third (36 per cent) believe cash can eliminate extra physical items and clutter around the home.

And 34 per cent think it’s the ideal gift because it can also be used to cover off experiences or days out at events.

Ross Borkett, Banking Director at Post Office, which commissioned the research, said: “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 5 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 also found the children agree, with receiving money leaving 64 per cent feeling “happy” and 49 per cent “excited”.

Almost two thirds (64 per cent) of those who preferred cash did so because they could spend it on something they really want.

Betsy Shaw, aged eight, from Cardiff, said: “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.”

Three quarters (76 per cent) of parents use a cash gift as an educational opportunity to teach their children about the value of money, with 69 per cent starting financial education with as young as five.

The typical child between 5 and 11 will receive around £55 per birthday, with 84 per cent of mum and dads also giving their own kids cash when the big day comes around.

Three in 10 (31 per cent) of youngsters sensibly live by a ‘spend some, save some’ mindset, while 12 per cent will go out and immediately blow their windfall on toys or games.

Ross Borkett added:“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. Post Office offers free cash withdrawals at all branches and parents of children who receive cash for their birthday can also deposit cash at their branch too. With many branches offering extended hours and weekend availability, your local postmaster can help you with your cash needs, whether it’s for day-to-day money management or a birthday gift.”

Leading etiquette expert and tutor Jo Bryant 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 – as this research shows.

“There are several ways you can ensure that a cash gift is well-received. First, include a handwritten note in the card telling them to buy something they really want – this adds a personal element. Secondly, ensure the amount of cash matches what you’d typically spend on a gift – there’s no need to be overly generous, as this can make people feel awkward. Thirdly, it’s best to give notes, as coins can be inconvenient.

“If your child receives a cash gift, ensure they write 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. Parents can easily access cash from their local Post Office, where they can also pay cash into their bank account if needed.”

ENDS