Kids to Enjoy £5 Billion Christmas
It seems it’s recession, what recession when it comes to children’s presents this Christmas with an estimated five billion being spent on keeping the little ones happy over the festive season, up 20% from last year.
The figures come out of research conducted by The Children’s Mutual, which is one of the UK’s largest providers of Child Trust Funds. They say that the average child in the UK will get £380 worth of presents this year, compared to £316 in 2008.
And not only toys. Alongside an estimated over £4 billion worth of toys and other presents underneath the UK’s Christmas trees, there will be a staggering £960 million in cash given as well. The average amount of cash given is £73, although around 25% will receive around £100.
Unsurprisingly, the sensible souls at The Children’s Mutual are asking parents, grandparents, relatives and friends alike to put some of this cash to better use than as a means of buying the video game. But how kids will respond with a letter from their loved ones explaining a decision to invest part of the filthy lucre they were expecting in their Child Trust Fund is not clear.
But David White, Chief Executive of The Children’s Mutual, is undeterred:
“It’s great news that the recession is not affecting kids’ stockings this Christmas. However we are urging parents to think about their children’s futures and ask friends and family to invest a portion of this money for the long-term.
“Around £200 is spent on presents that won’t make it past Easter, but if this money was invested in a Child Trust Fund each year, it could be worth £6,100 by the time it matures when the child turns 18. This way friends and family can give a gift that could last well beyond the child’s 18th birthday and providing them with a nest egg for the future.”
Although quite what kids will make of his reasoning remains to be seen, although The Children’s Mutual do point out that top ups into Child Trust Funds do get a timely boost at Christmas with an average increase in ad hoc payments of just under 25% during the festive period.
So it’s hopefully less cash on the hip this Christmas and better financial planning, although don’t the Government still say that only the brave (or foolhardy) consumer will save the county from continued recession?
Guest Article by Neil Camp
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My name is Alan Potts and I'm the Editor of the BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 
