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

Arts and crafts sets, tablets, games consoles, and sleepwear also featured on the top 20 list of desired Christmas presents.

And it emerged that a third (32 percent) of parents plan to give their child money this year – although only 49 percent of these will opt for physical cash.

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.”

The study also found a traditional 40 percent of parents prefer to give physical gifts to their kids at Christmas.

Over half of these (56 percent) do so because they think tangible gifts their kids can hold in their hands feel more special, and 29 percent believe their children understand the value of physical gifts more.

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

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

Of those, two in five (41 percent) think digital presents give their kids more independence, and 28 percent 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, 40 percent will gift them a physical gift card or voucher, while 22 percent will write them a cheque.

A more unconventional 13 percent plan to give their child their gift in a gaming currency, such as Robux or Minecoins, and eight percent 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.

And the study, carried out via OnePoll, found 37 percent 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.”