In a study of 1,000 parents, more than a third believe giving money can help reduce the amount of clutter in the house.
Parents say their their homes are already overflowing with toys that their children seldom use and six out of 10 would prefer their offspring received cash for their birthday to help combat the issue.
Ross Borkett, banking director at Post Office, which conducted the study, commented: “The last thing parents want is more clutter.”
“Anyone with children will know that their bedrooms are often packed with toys that haven’t been touched in months, either because newer, more exciting ones have arrived, or they’ve simply outgrown them.”
“In fact, the average child will receive 84 birthday presents from their friends between the ages of five and 11, which equates to a lot of toys potentially ending up in 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 budgeting.”
However, one in five gift-givers worry about being labelled ‘lazy’ if they opt for cash instead of a physical present, with 48 per cent concerned it might be seen as a last-minute choice.
The study shows that gift-givers needn’t worry as 64 per cent of children feel ‘happy’ and 49 per cent ‘excited’ when they receive money.
Eight year old Betsy Shaw from Cardiff shared: “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.”
On average, a child will receive approximately £55 per birthday, with 84 per cent of parents giving their own children cash on their special day. Three quarters of parents use it as an educational opportunity to teach their children about the value of money, with 69 per cent beginning financial education as early as five years old.
Three in 10 youngsters wisely adopt a ‘spend some, save some’ mentality, while 12 per cent will immediately splurge their newfound wealth on toys or games.
Ross commented: “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.”
“At Post Office customers can get free cash withdrawals and parents can deposit cash at their branch too if their kids receive it for their birthday.”