Australian kids set to receive an average of $65 each this Christmas

Handing cash to children at Christmas is easy instead of choosing a present, but there’s a few things you can do to help them understand money doesn’t grow on trees.

Dishing out cash for children at Christmas instead of choosing a present can be an easy option but the amount given needs to be thought through carefully.

As kids get older they often they want to hit the stores themselves with cash in hand instead of getting some non-trendy piece of clothing or a gadget that isn’t the latest model.

But experts say it’s critical children learn that money doesn’t grow on trees and they understand the value of a dollar.

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Many adults opt to give children cash instead of physical presents for Christmas. Picture: Getty Images

New analysis from Rooster Money, an worldwide app that keeps track of pocket money given to kids, quizzed 6000 Australians and found kids this Christmas will get on average $65 in cash gifts.

Lego is top of Santa’s wishlist followed by phones and tablets.

Rooster Money chief executive officer Will Carmichael said Rooster Money had 51 currencies used in its app or also offered stars — an alternative to giving kids cash.

“In Australia we found the average amount given by a grandparent is around $34 but there’s people who give much more or much less,” he said.

“If you decide to give them cash instead of something physical you have to think about what you want them to do with it.

“It helps quantify how much you give.”

Find out what your child is saving for, and give them a contribution equal to 50 per cent of the item’s value, a financial services expert suggests. Picture: iStock

Kids can work out what they want to do with it — whether it be buying something they really want or putting it towards something they are saving for.

Rising Tide Financial Services’ managing director Chris Browne said giving cash was “convenient” but a limit needed to be put on how much you handed over.

“Don’t get caught in the trap of thinking that the amount given is a love scoreboard because a thoughtful message in a card combined with $20 is a relatively large amount when you’re 10,” he said.

“A great way to figure out how much you should give your child is to find out what they’re saving for then make your contribution equal to 50 per cent of the item’s value.”

He also urged parents to only give “what you can afford” to avoid putting yourself under unnecessary financial strain.

TOP OF KIDS’ PRESENT LISTS

1. Lego

2. Phones

3. Tablets

4. Watches

5. PlayStation

*Source: Rooster Money

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Originally published as Australian kids set to receive an average of $65 each this Christmas