• More than half of Brits are planning to give financial gifts
  • Generous over-55s will shell out £116, hard-up 18-34 year olds £51
  • Yet most people think financial gifts spoil the Christmas surprise

 

Never mind the latest gadgets or home entertainment craze, new research from payyourway.org.uk, the education campaign for payments, shows that over £2.4 billion* is set to be given as financial presents this Christmas. Over half (57%) of Brits are planning on giving a monetary gift this year and it seems 18-34 year olds are the most likely to unwrap cash, vouchers or cheques. Almost half (48%) of those planning to give financial gifts this Christmas say they will give to family members in this age group.

 

Who are you planning to give financial gifts to this Christmas?
Family member or relative aged under 10 21%
Family member or relative aged 10-17 38%
Family member or relative aged 18-34 48%
Family member or relative aged 35-54 27%
Family member or relative aged 55+ 16%
A friend 11%
All % based on adults planning to give a financial gift

Tie a bow round a tenner? How we choose to give

Vouchers and gift cards continue to be the most popular way for people to make a financial gift, favoured by half (49%) of those planning to give financial gifts, closely followed by cash (34%). Cheques are the top choice for seven percent of people, while others choose to transfer money straight to a bank account or give a prepaid card (both 4%).

The over 55s emerge as the nation’s most generous group. Almost two thirds (65%) think they will give financial gifts worth a whopping £116 on average – more than double the £51 average that 18-34 year old givers of monetary gifts have planned. And if you have your heart set on receiving a financial present, Scotland is the place to be. Scots who are planning to give financial gifts think they will give a total of £104 to their nearest and dearest, against a UK average of £88.

 

Dear Santa, may I have some cash please?

While almost a quarter of Brits (23%) have no reservations asking for a financial gift, over half (54%) rule it out for fear of spoiling the surprise. The nation’s 18-34 year olds are most likely to ask for money under the Christmas tree this year – two in five (39%) are planning to let their friends and relatives know they want a monetary present.

Across the population, cash is the most popular way to receive a financial gift – favoured by one in three British adults. Vouchers and gift cards rank second (24%), cheques are preferred by seven percent, while others would like an electronic payment made straight to their account (3%) a prepaid card (2%) or even mobile phone credit (1%).

 

Shopping sprees and the gift that keeps on giving

Two in five Brits (40%) think they will put any money they receive this Christmas towards something they have had their eye on but wouldn’t otherwise be able to afford, while a third (32%) would treat themselves by going on a shopping spree. This number rises steeply amongst the nation’s women –  with 41% saying they would go on a shopping spree, compared to just under a quarter (24%) of men! Some people have earmarked any Christmas cash gifts they receive for a holiday (13%), while a super generous six percent say they would ‘re-gift’ the windfall buying more presents for others.

Commenting for Pay Your Way, Adrian Kamellard, Chief Executive of the Payments Council, said: “Billions of pounds in cash and vouchers look set to be left under Christmas trees this year – it can certainly be a handy way to avoid buying an unwanted gift for a loved one. But whether you’re giving a financial gift or not, it’s good to know how to choose the best type of payment for your situation. payyourway.org.uk has information and tools to help you make the best choice, as well as handy guides on everything from internet banking to getting the best deal when paying bills.”