As the nation prepares for a Christmas like no other, research has found that British parents believe £1 billion* worth of the presents given to children will go unused. 

The research, commissioned by The Royal Mint, reveals that a total of £4.5 billion will be spent on Christmas presents for children this year in an attempt to bring festive cheer to the end of a difficult year. However, one in four of these gifts will be left unused and not played with**. In contrast, almost two thirds of parents agree they will be gifting differently in light of COVID-19. Interestingly, 46% of Brits admit they are less likely to buy physical gifts for loved ones than they were in 2019. Instead, more than half are looking to put money spent on presents into saving funds for their children to enjoy at a later date. 

Just last week, the Financial Conduct Authority warned how too many nest eggs were being kept in standard cash accounts, which pay well below the rate of inflation.  Data from The Royal Mint reveals that adults who invested £25 a month in gold over 18 years between 2002 and 2020, would have accumulated £13,393 in gold savings. When compared to putting the same amount into a 2% cash ISA, it would have accumulated £6,493, while simply setting it aside with no interest would leave savers with £5,400***. 

With this in mind, The Royal Mint has launched Little Treasures, the first ever digital gold savings account designed to enable adults to invest in gold specifically for their children or grandchildrenIn 2020, gold has had a record-breaking year, largely due to the uncertainty created by the global pandemic, and this new product is designed to make investing in gold even easier, particularly for those new to the market. 

Andrew Dickey, Divisional Director of Precious Metals at The Royal Mint said: “One of the most precious gifts you can give any child is to help secure their financial future. Backed by the reputation of our gold bullion bars, a store of wealth trusted by banks and intermediaries all over the world, we’ve designed a digital gold accumulation account where you can save for the next generation. Investors can watch their loved ones grow knowing they’re building a golden nest egg to help give them the best possible start in life. 

It is really interesting to see that Brits are planning to gift differently this Christmas, in light of how the world has changed. And, at a time when planning for our children’s future is more important than ever, our new Little Treasures investment product will allow parents, grandparents and loved-ones to invest a little each month in gold - a precious metal that’s increased in value over time.”  

For more information on Little Treasures click here. 

* Calculated using ONS figures for children aged 0-10 (8,820,889). 

** The top reasons behind this include the gift being deemed as ‘boring’ (34%), similar items being gifted (33%), the child already owning one (21%) and the present isn’t the latest version of the item (13%). 

*** Calculated using the last business day of 2019 and the first calendar day of 2020. Based on interest on the cash ISA being paid yearly in month 12, and that money is saved or invested on the first business day of the month. These figures are exclusive of additional precious metal purchase & storage fees. 

 

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