Buying gifts for children is never easy. Every week a new toy, techie device or cartoon character seems to be top of the pops, while old favourites fall off the radar just as quickly. No wonder so many parents and relatives take the easy way out and give kids money for Christmas. In fact, the latest findings from Roy Morgan Research’s Young Australians Survey reveal that almost nine out of every 10 (87%) Aussie children aged 6-13 would have received some cash for Christmas.
The amount young Australians receive varies dramatically, but anywhere from $50 up is common. Just over 22% of kids are given between $50 and $100, 20% receive between $100 and $200, and just under 22% receive $200 or more. (These amounts may be the sum of more than one cash gift.)
Spend or Save?
There are also notable differences in what boys and girls who receive money for Christmas do with their money. Saving it in a bank, buying toys with it and saving for a big item are very popular with all kids; but whereas different kinds of console and computer games feature among the top 10 things boys do with their money, more girls opt to spend theirs on clothes and music.
Source: Roy Morgan Young Australians Survey, July 2013 – June 2014 (n=2,140)
The interesting thing to note is just how many of the children surveyed stated that they would be willing to save it in a bank. The disappointing thing is that most financial institutions don’t cater to young people by providing them a fair go when it comes to banking, so this influx of Christmas pocket money can be frittered away.
At The Greater, we decided that saving shouldn’t be a dirty word to young people, so we created our new Life Saver Account specifically for those under 25. Here’s how it works.
- Can be opened with as little as $1
- Life Saver pays a great high interest rate so their savings grow
- The account can be linked to an Everyday Account for transaction-fee-free banking
- Your kids can open one on their own, or you can open one for them
- Free Internet, Mobile and Phone Banking
So why not ask your little ones what they’d like from their Christmas pocket money? Tell them – sure, they can spend their money now, or they can put it away for a rainy day and watch their money grow. Opening a Life Saver Account with The Greater could be a great chance to teach them the right saving habits from day one.
Find out more about our Life Saver Account, and how to open one here.
And to check out our guide to teaching your kids to save, click here.
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