Savings are taking priority over presents as the festive season approaches.
Parents are planning to spend less on gifts for their children this Christmas in order to keep up their savings contributions, it has emerged. According to a survey by Family Investments, the average child is set to receive just £60 worth of presents from their parents this year as extra funds are poured into savings accounts.
The research shows that 71 percent of mums and dads would prefer to use any spare cash they have to top up their children's savings instead of spending it on festive gifts. As a result, the average spend per child has been reduced by £55 compared to last year when youngsters received around £115 worth of presents.
Grandparents may also be making smaller offerings this Christmas as the survey shows that 54 percent of parents questioned would prefer grandparents to put money into children's savings accounts rather than lavishing them with expensive gifts.
Kate Baker, head of savings and investments at Family Investments, said: "Christmas is always an expensive time of year and parents are planning to cut back on children's presents in order to help the strain and enable them to still keep their longer-term savings topped up."
Research carried out recently by the Children's Mutual revealed that despite the financial crisis and the threat of a recession, three-quarters of eligible parents are actively investing their Child Trust Fund vouchers.
Compare savings accounts via money.co.uk
