By Aisling Finn on Tuesday 11 August 2020
Two in five adults admitted to giving cash instead of physical gifts under lockdown according to new research from Nutmeg.
Children cashed in on cash gifts under lockdown, according to digital wealth manager Nutmeg.
Nearly half of the UK’s adults (41 per cent) said they were more likely to give cash over physical presents under lockdown.
Almost three-quarters of adults (71 per cent) have given children gifts under lockdown and of those adults 43 per cent said they had gifted kids cash, with over half of those gifts (23 per cent) were sent via bank transfer.
Prior to lockdown, adults said they gave, on average, £20 per gift to young relatives meaning that, if the figure has remained the same, children’s pockets in the UK will be around £307m deeper.
James McManus, chief investment officer at Nutmeg, said: “There is an apparent openness – or even potential preference – to gifting cash as a result of lockdown. “
“While lockdown measures might be temporary, the findings suggest these new habits could mark the beginning of a lasting trend, with the potential to provide a significant boost to the financial futures of children.”
The findings come just as Nutmeg releases a Junior ISA that allows friends and family to contribute.
Nutmeg’s research also found that 17 per cent of adults have become more familiar with online banking and 34 per cent are more likely to gift cash in the future because of lockdown.
