A study of 1,000 children and their parents found 65 per cent of kids would be happy with money instead of physical presents as gifts – including digital currency or gift cards that they can spend how they want.
And a quarter even said they’d prefer it.
Children have asked for money, clothes and books this year
Arts and crafts sets, tablets, games consoles and sleepwear also featured on the top 20 list of desired Christmas presents.
It also emerged 32 per cent of parents plan to give their child money this year, though only 49 per cent of these will opt for physical cash.
Will Carmichael, CEO of NatWest Rooster Money, which commissioned the study, said: “With the range of digital options out there, the use of cash in our day-to-day lives is dropping and that means we need to continually evolve how we engage and manage money with our children.
“Digital forms of currency are taking on a crucial and growing role, with many parents saying these are not only easier to track but can give kids more independence.
“We can’t predict how the format of money will continue to evolve in the future – so the point here is around choice and giving people options depending on their age and context.
“The best thing we can do is have open conversations and engage with our kids from early on, to help them grow into healthy spenders, earners and savers.”
The study also found a traditional 40 per cent of parents prefer to give physical gifts to their kids at Christmas.
Of these, 56 per cent think tangible gifts their kids can hold in their hands feel more special, and 29 per cent believe their children understand the value of physical gifts more.
And 20 per cent go a step further to say physical gifts provide their kids with a learning opportunity, and 47 per cent think they feel more personal.
Just 12 per cent of parents favour digital varieties, but 36 per cent recognise the benefits of both.
Of those, 41 per cent think digital presents give their kids more independence, and 28 per cent see going digital as a more sustainable, less wasteful gifting option.
It also emerged that of the parents planning to give their child money this Christmas, 40 per cent will gift them a physical gift card or voucher, and 22 per cent will write them a cheque.
A more unconventional 13 per cent plan to give their child their gift in a gaming currency, such as Robux or Minecoins, and eight per cent will drop some cryptocurrency into their child’s e-wallet.
Physical or virtual, Christmas 2022 won’t come cheap, with parents planning to spend an average of £251 fulfilling their child’s Christmas wish list.
In the study, carried out via OnePoll, 37 per cent of parents said they have used Christmas as an opportunity to teach their kids about money in the past.
Iona Bain, a personal finance expert and spokesperson for Natwest Rooster Money, added: “We’re seeing an intriguing shift in how young people engage with and learn about money.
“This is especially true of Gen Alpha, who are growing up with so many new, digital finance tools that previous generations never had access to – from saving apps and spending cards to digital currencies.
“While cash still proves popular with kids, Robux and other gaming currencies are now more in demand than gift cards.
“And, as kids get older they’re shifting towards things like bank transfer as their preferred means of receiving money, as they get more financially confident.
“It’s understandable that, for many parents, physical cash still plays a vital role at Christmas.
“But what’s intriguing about their cash sensibilities is that there’s also a suggestion of digital overwhelm.
“Parents want to give their children key life skills around money, and now in 2022, this means embracing both physical and digital financial tools when helping them get to grips with it all.”
The 2022 Christmas wish list – according to kids
Clothing, shoes or accessoriesMoney (either as cash, cheque, bank transfer etc.)BooksA games consoleToysTech items (iPad, Fitbit, Apple watch, laptop etc.)Arts and crafts equipmentSmartphoneSleepwearLego or other creative building toysGaming currenciesA gift cardCuddly toysBoard or card gamesMake-up/ beauty productsFitness/ sporting equipment or kitBicycle, scooter or skateboardCostumes/dressing up stuffSubscriptions (Spotify, Netflix etc.)Baking toys/equipment Read More