Home Business NewsBusiness Cash gifts at Christmas: The most popular financial presents and their pros & cons

Cash gifts at Christmas: The most popular financial presents and their pros & cons

by LLB Editor
16th Dec 22 10:44 am

A third of people will give cash this Christmas, a new study has found.

Just 7% plan to give cheques and more than a quarter will give gift cards this year.

A total of 2% of people plan to give cryptocurrency for Christmas.

Laura Suter, head of personal finance at AJ Bell, comments: “Rather than wrapping a gift to go under the tree, lots of people are instead opting to hand over cash, gift cards or other monetary presents this year, with around two-thirds planning some form of financial gift. It’s understandable that after a tough financial year many people would prefer to give (and receive) money, rather than a present.

“The most popular options were cash, with a third of people planning to pop some money into a card this year, followed by giving gift cards. In a move that many people will find pretty impersonal, but others find highly practical, one in six people plan to just transfer money directly into a friend or family member’s bank account.

“Likely largely the preserve of grans and grandads around the country, another 7% intend to hand over a cheque to their loved ones this year. While undoubtedly safer than sending money through the post, many young people today won’t have a clue how to cash a cheque and could easily leave it dwindling in a desk drawer uncashed.

“Despite being one of the nation’s favourite ways to save, not many people plan to gift Premium Bonds this year, with just 3% intending to do so. These saving accounts have the (slim) potential to make the recipient a millionaire but many will go for the ease of other options, while older children are more likely to ask for cash than the chance to take a spin on ERNIE.

“Before writing that cheque or posting a £10 note this Christmas, there may be better options for gifting money. Gift cards often go unused and get forgotten about, meaning your money is wasted, while cash could get lost in the post. Putting money into a savings or investment account, or buying Premium Bonds, might be a better way to give alonger-lasting gift that doesn’t get lost down the back of the sofa.”


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