The New Christmas Trend: How Kids Are Combining Allowance and Gift Money for Bigger Dreams
Christmas is a time of magic, tradition, and anticipation - especially for children eagerly crafting their wish lists. But in households across the UK and the US, a new trend is reshaping how kids approach the holiday season. More and more children, particularly those aged 7 to 15, are combining their allowance (or pocket money, as it's often called in Britain) with the monetary gifts they receive at Christmas. Instead of clamoring for a pile of small presents, they're pooling resources to buy one or two larger, more meaningful gifts.
This isn't just a practical shift. It's a reflection of a growing awareness among children about the value of money and the satisfaction that comes from saving up for something truly special. A recent survey of family financial habits found that over 70% of children in this age group prefer saving up for a big-ticket item rather than receiving several smaller gifts they might not use. For parents, this shift can be a refreshing change. It cuts down on the holiday clutter of unwanted or forgotten toys and gives children a valuable lesson in financial literacy that could benefit them for years to come.
Why Kids Are Opting for Bigger Dreams
The idea of pooling funds for a more significant present taps into a child's sense of ownership and ambition. Many kids are learning that saving money - whether it's from weekly allowances, birthday gifts, or festive cash envelopes - can make the difference between settling for less or acquiring something that truly sparks joy. For example, a nine-year-old boy might trade a handful of small, short-lived toys for a brand-new bike, while a teenage girl might save up for high-quality headphones or a designer backpack she's had her eye on for months.
What makes this trend so interesting is that it often starts with the children themselves. Apps like Rewards Kids are helping facilitate this change, making it easy for children to track savings, set financial goals, and even earn rewards through chores or good behavior. By using a digital tool, kids gain a visual understanding of their progress, which keeps them motivated and teaches them the value of delayed gratification. Instead of waiting passively for Christmas morning, they're actively working towards a gift, which can make the final purchase all the more rewarding.
Parents Embrace the Change
For many parents, this trend couldn't come at a better time. The rising cost of living, combined with the stress of navigating a long wish list, has made holiday shopping more complicated than ever. Encouraging kids to save their own money toward a larger present not only eases the financial burden but also creates a sense of partnership between parents and children.
Take Emma, a mother of two from Manchester. Last Christmas, her 10-year-old son wanted a keyboard for music lessons - a gift far beyond the family's usual holiday budget. Rather than dismiss the idea, Emma encouraged her son to save £50 of his pocket money over several months. When Christmas arrived, the whole family contributed to the rest, making the keyboard a reality. "It was a proud moment for me as a parent," she says. "He wasn't just happy to receive it; he appreciated it more because he had worked for it."
Jennifer, a mother from New York, had a similar experience with her teenage daughter. After saving her allowance for six months and using birthday money, Jennifer's daughter was able to buy a designer bag she'd been dreaming of. "It taught her patience and budgeting," Jennifer explains, "and I think she treasures it even more because she understands its value."
The Role of Technology in Teaching Financial Literacy
This growing awareness among children isn't accidental. In today's world, apps like Rewards Kids are making it easier than ever to instill financial habits early. Designed for families, the app lets parents assign points for completed chores or good behavior, which children can redeem for money or other rewards. Kids can also set up savings goals, creating virtual piggy banks for specific items they'd like to purchase - whether that's a skateboard, a tablet, or a Christmas gift for themselves.
What makes Rewards Kids particularly effective is how it transforms abstract financial concepts into tangible, interactive experiences. Children can see exactly how their earnings stack up against their goals, giving them a sense of control and accomplishment. For parents, the app simplifies allowance tracking and reinforces the idea that money is earned, not given freely.
Making Christmas Morning Magical
Of course, one big present doesn't mean Christmas morning has to feel sparse. Many families are finding creative ways to maintain the magic of the holiday while focusing on fewer, more meaningful gifts. For instance, some parents wrap larger presents in layers of paper, creating a fun unwrapping experience that builds suspense. Others include small but thoughtful stocking stuffers - like books, sweets, or cozy socks - that add a festive touch without overshadowing the main gift.
There's also the joy of turning the act of saving into a family tradition. Parents and children can sit down together to discuss financial goals, celebrate milestones, and even use the holiday season as an opportunity to talk about broader money topics. For instance, how does one decide between spending on wants versus needs? And how can patience lead to greater rewards in the future? These are lessons that extend far beyond Christmas, shaping children into financially responsible adults.
A Lesson in More Than Money
At its heart, this trend is about more than just presents - it's about teaching kids the value of thoughtful planning and delayed gratification. For children, saving up for a larger gift fosters a sense of independence and responsibility, while parents gain peace of mind knowing they're helping to prepare their kids for the financial realities of adulthood.
This Christmas, as families gather around sparkling trees and crackling fires, the focus on saving and goal-setting can make the holiday even more meaningful. With tools like Rewards Kids in hand, children can learn that the best gifts aren't just found under the tree - they're the skills and lessons that last a lifetime.
Happy saving and Merry Christmas to all!