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Article by Gina Spampinato

Who says cash for Christmas is a cop-out?

New research reveals money, clothes, accessories and books as the top asks on kids’ Christmas lists this year

  • Majority of British parents (56%) say physical Christmas presents like scarves, toys and cash are more ‘special’ than digital gifts like virtual gift cards, according to research from NatWest Rooster Money.
  • 65% of kids say they’d be happy with money, digital currency or gift cards to spend on what they want - over actual gifts, with some (25%) even saying they’d prefer money-based gifts.
  • Physical or virtual, parents expect to spend an average of £251 fulfilling their children’s lists in 2022.
  • If giving money, British parents are most likely to give cash (49%) (which 55% of kids prefer too) - but bank transfers are becoming popular amongst 27% of parents.

Children have revealed what they want for Christmas this year – including new clothes and the latest accessories (26%), money (19%) and books (17%).

A study of 1,000 children (aged six to 16) identified what’s at the top of the modern kid’s wish list this year, with a quarter (25%) saying they’d rather receive cash, digital currencies or gift cards to spend how they please over physical gifts. 14% also said they’ve got virtual currencies for games like Minecraft, Roblox and Fortnight on their list.

Arts and crafts sets (15%), tablets, smart phones (15%) and pyjamas (15%) also emerged on the top 20 list of desired Christmas presents. The items that narrowly missed out included musical instruments and cameras – and even NFTs – highlighting how times have changed since the average parent last wrote their own list for Santa.

The same research also polled 1,000 parents and revealed they expect to spend an average of £250.70 fulfilling their kids’ wish list this year. This suggests families are determined to still make Christmas special, even as the cost of living bites.

Physical vs digital gift-giving

Two in five (40%) parents said that when it comes to Christmas presents, they prefer to give their children physical gifts, with 56% saying this is because tangible presents like clothing and toys feel more special.

Other reasons parents gave included that physical gifts are more personal (47%), that their kids understand the value of physical gifts more than virtual ones (29%) and even that physical gifts can provide their kids with more of a learning opportunity (20%).

Just 12% of parents said digital was their preferred method of gifting. However, more than a third (36%) said that both physical and digital presents have their benefits, with two in five (41%) agreeing that digital gifts gave their children more independence, and 28% seeing them as more sustainable and less wasteful than physical presents.

"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.

"Times are clearly changing - and whilst 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. 20% of parents say they find it harder to teach their kids about saving now that money is becoming more digital, and a further 23% think their child finds it easier to save physical money - highlighting a clear need for resources that make the digital world we’re hurtling towards more accessible.

"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."
Iona Bain, author and award-winning financial writer

"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. Cash does still play an important role - in fact over a quarter of parents say that they like to give cash at Christmas because of its tangibility.

"At the same time, 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. Our Rooster Card and account is a great example of that, providing youngsters with a taste of autonomy and tools to help make digital money more tangible, whilst still retaining some visibility for their parents.

"But with 72% of families acknowledging Christmas as an important moment for kids to learn about money, it’s vital to recognise the role of both traditional and more modern currencies. 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."
Will Carmichael, CEO of NatWest Rooster Money

Cash or card: the new Christmas conundrum

Just 32% of parents plan on giving their kids money for Christmas this year. But for those who are, cash remains king – with nearly half (49%) saying they’d give their child notes or coins come the 25th.

As money becomes increasingly digital, almost a third of parents said they’d send a financial gift via a bank transfer. However, two in five (40%) still expect to give their child gift cards, vouchers and book tokens – and as many as 22% of parents will go old school and write their kid a cheque.
A forward-thinking 13% plan to give their child a gaming currency like Robux or V-Bux, and an unconventional 8% will gift their child some crypto – another nod to the evolving world of money.

Two in five kids (19%) will be asking for money this year, rising to 22% among those aged 13-14 and nearly a third (29%) of kids over 15 – suggesting they’re increasingly seeking choice and independence as they get older. Nearly three in five (55%) would like to receive this money as cash.

However, bucking against their parents’ preferences , just 13% would be happy to receive a cheque, 12% would like a gift card and 5% would like book tokens. Bank transfers (25%) and subscriptions (16%) were much more popular, with Robux also climbing to the top of the virtual currencies (13%) over V-Bucks (10%) and Minecoins (5%).

Top 20 things on kids Christmas list in 2022

  1. Clothing, shoes or accessories (tops, jumpers, jeans, jewellery, scarves, handbags, trainers, etc.)
  2. Money (either as cash, cheque, bank transfer etc.)
  3. Books
  4. A new games console (Playstation, Xbox, Nintendo Switch etc.)
  5. Toys (electronic, wooden or plastic)
  6. Tech (iPad, Fitbit, Apple watch, laptop etc.)
  7. Arts and crafts equipment (chalk, crayons, paint brushes etc.)
  8. Smartphone
  9. Sleepwear (pyjamas, slippers, dressing gowns etc.)
  10. Lego or other creative building toys
  11. Gaming currencies (Minecoins, Robux, V-Bux etc.)
  12. A gift card from a favourite shop
  13. Cuddly toys/teddies
  14. Board or card games
  15. Makeup/beauty products
  16. Fitness/sporting equipment or kit (football, netball hoop, goal post etc.)
  17. Bicycle, scooter or skateboard
  18. Costumes/dressing up stuff (superheroes, Disney characters etc.)
  19. Subscriptions (Spotify, Netflix etc.)
  20. Baking toys/equipment

-Ends-

Notes to Editors

For more information, please visit Natwest Rooster Money’s homepage here. To arrange further interviews or comment, please get in touch with our press team:

Press Contact:

Elizabeth James, Account Director, Common Industry
Email: elizabeth.james@commonindustry.co.uk
Tel: +44(0) 7534 178225

Methodology
Research was conducted by OnePoll in November 2022, surveying 1000 parents and their children aged between 6 and 16 on presents and gifting at Christmas, with representative samples of children from each age bracket.

About NatWest Rooster Money
NatWest Rooster Money is a kids’ prepaid debit card and pocket money app that gets kids confident with money, preparing them for brighter futures. Founded in 2015, RoosterMoney relaunched as NatWest RoosterMoney in May 2022. The app features a range of flexible features for kids from 3 to 17, including a Star Chart and a Virtual Pocket Money Tracker to kick start money management, through to premium offerings such as Chore Manager and the Rooster Card (a prepaid debit card for kids over 6). Rooster Money was voted Best Children’s Pocket Money App in the Moneynet Awards 2021 and Best Kids’ Spending App in the Finder Banking Innovation Awards of 2020.

Families can get a one-month free trial when taking out a Rooster Card. A subscription costs £1.99 per month or £19.99 per year. Subscription will auto-renew unless cancelled. NatWest Group customers can get up to 3 Rooster Cards free for their family for 12 months. Customers must be registered for mobile or online banking with kids aged 6 to 17.