Related Articles
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 (25%) of these gifts will be left unused and not played with.
In contrast, almost two thirds (64%) 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, 55% are looking to put money spent on presents into saving funds for their children to enjoy at a later date.
With this in mind The Royal Mint has launched Little Treasures, the first ever savings account designed to enable adults to invest in gold specifically for children from 0-18. This year in particular, 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.
Parents cited increased importance of financial security (44%), planning for the future (40%) and the significance of material goods decreasing (26%) as the key reasons for this shift in approach to gifting.
Andrew Dickey, Divisional Director for Precious Metals at The Royal Mint, said: “It is really interesting to see that Brits are planning to gift differently this Christmas, in light of how the world has changed. 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.”
The survey highlights that of the 17 physical gifts the average child is expected to receive this Christmas, 43% of parents anticipate they’ll return or exchange at least one. On average, kids in Newcastle are set to get the most (24 presents) followed by Plymouth, Norwich, Glasgow (21 presents) and Manchester (20 presents). The majority of parents in Leeds (60%), Brighton (53%) and London (52%) are expecting to head back to the shops with unwanted gifts. This compares to just 15% in Glasgow.
With so many gifts being wasted, Little Treasures is a gift that keeps giving. The Royal Mint has revealed that if you would have invested £25 a month in gold over 18 years between 2002 and 2020, you would have £13,393. When compared to putting the same amount into a 2% cash ISA, the investment would have accumulated £6,493.
Andrew continues: “If parents, grandparents or loved ones want to give the gift of gold this Christmas, Little Treasures is the perfect option. As the home of gold in the UK, The Royal Mint is ideally placed to launch a platform such as this and what better time than Christmas.”
The Royal Mint has established itself as a leader in gold investment in the UK, offering both physical gold in the form of coins and bars and digital gold investment options. A Little Treasures account is the first account in the UK that is specifically dedicated to saving gold for children, allowing families to start building a nest egg from £25 a month.
To find out more, visit: www.royalmint.com/littletreasures
