Cash gifts for kids: why parents are embracing this modern birthday trend
A recent survey found that UK parents prefer gifting cash to kids because of the lessons in money management can offer
For many modern parents, children’s birthdays have become less about accumulating toys and more about giving gifts with lasting value.
A recent poll of 1,000 parents of five- to eleven-year-olds, conducted by the Post Office, reveals a compelling shift in preferences: six in ten now want their children to be gifted cash for their birthdays.
This move, while practical, speaks to a larger trend towards teaching financial responsibility and reducing the overwhelming piles of toys filling up family homes.
Why cash gifting makes sense for many families
Cash gifts not only free up space, but they also encourage children to think carefully about what they truly want. More than a third of parents (36%) prefer cash gifts simply because their homes are already overflowing with toys their children rarely play with, and almost half (49%) believe that money allows kids to pick out something they genuinely desire.
This emphasis on quality over quantity has seen cash emerge as an increasingly popular, if sometimes divisive, gift choice at children’s parties.
As one mum shared on Reddit, “My child absolutely loves receiving cash. Sometimes she buys herself a new toy, and other times she saves it or even gives to a charity. It’s teaching her more than just spending.”
Navigating the social stigma around cash gifts
Despite the appeal, many parents admit they feel hesitant about gifting money alone. Over a fifth (22%) of parents worry that opting for cash might come across as ‘lazy’ or, worse, a lack of effort. Nearly half (48%) say they feel self-conscious, fearing it may seem like a rushed, last-minute solution.
This social pressure keeps some parents from embracing cash gifts outright, even if they believe it’s a better choice for their family.
Making cash gifts meaningful
For those who do opt for cash, finding ways to make it feel special is key. Some parents have started putting cash gifts into savings accounts or junior ISAs to give birthday money a more lasting impact. This allows contributions to grow over time, making cash gifts a thoughtful step toward future milestones.
Whether saving for education, travel, or a first car, these accounts ensure birthday gifts can be more than a one-off treat—they become a valuable asset for a child’s future.
Ultimately, choosing to give cash gifts is a highly personal decision, reflecting each family’s unique values and priorities. But as six in ten parents now embrace this approach, it’s clear the trend has staying power.
Cash gifts are more than just a simple solution; they provide an opportunity for children to learn about money in a way that’s both hands-on and empowering.
Whether met with enthusiasm or scepticism, cash gifting is shaping up to be a thoughtful, modern approach to children’s birthdays that resonates with today’s parents.
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Authors
Ruairidh is the Digital Lead on MadeForMums. He works with a team of fantastically talented content creators and subject-matter experts on MadeForMums.
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