Christmas cash windfall for kids
British children are due to receive a cash windfall of some £2.4bn this Christmas as parents, grandparents, aunts and uncles turn to pounds and pennies for presents this year.
MoneyExpert.com research shows that 48% of all adults will give cash gifts to kids this festive period, handing over £94.82 on average.
The independent financial comparison website says that most adults are likely to give children between £20 and £50 and it is urging children – or their parents – receiving the windfalls to think carefully about where they save their cash.
MoneyExpert.com analysis shows the average interest rate paid by kids’ savings accounts is an impressive 4.9% – but there are plenty of poor deals out there.
More than 130 accounts are on the market for children from banks and building societies but MoneyExpert.com figures show 30 pay less than the average with some as low as 1.5% for sums of £1/£5/£10.
Sean Gardner, chief executive of MoneyExpert.com, said: “Giving kids some cash for Christmas is a good way to put a smile on their face – and possibly help them to get the savings habit.
“I don’t want to spoil the fun but if your child has some cash lying around on top of their Christmas presents this year, it might be worth suggesting they start saving. It might not be what every kid wants but it’s certainly a good way to introduce the idea of thinking about money.”