No sign of recession for kid’s stockings this Christmas
Children in the UK are set for a bumper Christmas this year receiving £5 billion of presents, according to research from leading Child Trust Fund provider, The Children’s Mutual. With generous friends and family set to spend 20 per cent more than last year on youngsters, it seems the recession is not impacting kids’ stockings just yet.
The average UK child will receive £380 worth of presents this year, compared to £316 in 2008. In total, UK kids will have over £4 billion worth of toys and other presents underneath their trees, along with £960 million in cash, with each child receiving an average of £73. More than a quarter of lucky UK children will get £100 or more.
The Children’s Mutual is urging parents to take advantage of the generosity of friends and family this Christmas by asking them to invest in a present that could last a lifetime.
David White, Chief Executive of The Children’s Mutual, said: “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.”
The Children’s Mutual also found that a lot of money is spent on presents that often don’t last for more than a couple of months.
David White continues: “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 – providing them with a nest egg for the future.”
According to figures from The Children’s Mutual, top ups into Child Trust Funds get a timely boost at Christmas with an average increase in ad hoc payments of just under 25% at this time of year.
The research also found that almost a third (31%) of children are allowed to spend all the money they receive at Christmas, although the majority (42%) are allowed to spend some but save the rest.
Parents could be making their Christmas spending work even harder, thanks to CTFcashback; the site offers an average cash back of over 5% with more than 1,000 of the UK’s leading retailers.
When shoppers use the site to make their Christmas shopping purchases they can be earning cashback which can be directed into a child’s Child Trust Fund meaning that parents, friends and family are contributing to the child’s future just by shopping for their presents.
 Commissioned by The Children’s Mutual, The Parenting Matters Report questioned 2070 parents with children aged 5-15 in May 2009.
 £380.74 (average amount children receive in cash and presents 2009) / £316 (average amount children receive in cash and presents 2008) x 100 = 120.49%.
 Estimated number of children in the UK x the average amount a child receives in presents. 13.1m children in the UK (http://www.statistics.gov.uk/cci/nugget.asp?id=1163) x £307.46 = £4,027,726,000.
 Estimated number of children in the UK x the average amount a child receives in cash. 13.1m children in the UK (http://www.statistics.gov.uk/cci/nugget.asp?id=1163) x £73.78 = £959,968,000.
 The Parenting Matters Report commissioned by The Children’s Mutual in May 2009 (64.64% of presents will not last more than 3 months).
 Future projected values are based on £200 being invested once a year (excluding the government’s contributions) for 18 years in a stakeholder CTF account. We’re assuming an investment return of 7% a year, and charges of 1.5% of the CTF account value each year. The projected values aren’t guaranteed because the value of shares goes up and down. So the final payout could be more or less than this.
 Based on ad hoc payments made into The Children’s Mutual CTF accounts in Jan 09 compared to the rest of the previous year.