Prepaid Gift Cards Popular for Christmas
Gift money is a popular present many Brits will be receiving for Christmas this year with some receiving their cash on a prepaid card.
A survey by First Direct showed collectively the nation is set to receive £587 million in gift money, with one in five likely to be in receipt of an average amount of £61.
While the majority generally receive their Christmas money as cash, other forms of money will also be exchanged, with 20 percent receiving their money as a cheque, nine percent as a gift card, seven percent straight into their current account, and two percent as a prepaid gift card.
Although 43 percent aim to treat themselves with the funds, such as buying jewellery or putting it towards a holiday, one in ten will be using it to pay off debt.
A further 36 percent will use it to help fund groceries, a quarter will put it into savings or investments for future needs, and three percent will donate it to charity.
“December can be an expensive time of a year and this influx of cash around the festive season will be welcome for many,” said Richard Brown, First Direct’s senior savings product manager.
“It’s easy to be tempted to splurge when we get an unexpected cash gift so the fact that more than half are planning to use their extra money sensibly is a positive sign.”
Women were shown to be more likely to receive money as a Christmas gift with 22 percent compared to 13 percent of men.
Put Money onto a Prepaid Gift Card
The survey showed many will be in great need of money as a gift as over a third of those surveyed admitted they go into their overdraft in December, while 24 percent dip into their savings.
If you give someone a prepaid credit card for Christmas with some money already loaded onto it, the card could also help them budget their money for use in daily spending as it prevents people spending more than they have on it.