LONDON, Tuesday 8th November, 2022: Over two thirds (62%) of parents are concerned about the amount of unwanted plastic toys, or “tat”, their children may receive this Christmas. The latest data from Ford Money has found more than half (52%) of parents revealed that items such as clothes, toys, and jewellery often never got used after the holiday period.
Given the current socio-economic climate and ongoing environmental battle, it’s no surprise that more than half (58%) of parents would rather their children receive a monetary gift (e.g. Premium Bonds, ISAs) this year than a new toy.
Almost half (47%) of adults in households with children say they have accumulated at least 10 pieces of “tat” in the last year alone – with one in 20 admitting they have gathered over 40 useless items and gadgets. With plastic toys continuing to be top of the Christmas list must-haves for many children in the UK, and 46% of parents revealing they spend between £21 and £100 on presents per month, that’s £252- £1200 a year. This raises concerns about both the environmental and financial sustainability of our giving habits.
But the tides are changing, according to the recent research by Ford Money, many parents are now stating that they would rather their child received money, or an experience, instead of a material gift. Considering the average monthly spend on gifts is £37.65 in the UK, if this money was put into a Ford Money Flexible Saver account each month at a rate of 2.5%, this could amount to £2,408.60 over the next five years.
However, this shift in gifting habits isn’t solely fuelled by the desire to declutter the house or wanting our children to put some money away for a rainy day. Recent economic strains have forced people to reassess their gifting, spending and savings attitudes. When considering recent pressures, almost three quarters (79%) of parents plan to cut-back on gifting to help pay for essentials including childcare, household bills and petrol.
Will Davies, Chief Deposits Officer, at Ford Money comments “We want to encourage sustainable finances and help the environment. The gift of saving is something that might seem alien, but in fact can be one of the best gifts you can give at any age. You won’t always remember that new toy you got one year, but your savings and how you manage them is something that is not only helpful to understand, it is essential.”
Davies continues “These are unfamiliar financial times, and at Ford Money we understand that when the road ahead isn’t always crystal clear, it can feel very daunting. Especially in a time with so many economic policy changes and wider global concerns. We want to encourage people to be hands on with their savings and make it a topic of family conversations, not something you simply squirrel away each month.”