Money Moral Dilemma: Should we buy Premium Bonds for the children in our families this Christmas?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

 My partner and I don't have kids, but we've always bought small Christmas gifts for the children in our families. Yet we begrudge buying toys for consumerist and environmental reasons, and are considering getting something such as Premium Bonds for them instead. However, we're not sure whether that would be appreciated by the children or their parents.

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MalMonroe

Hi, you might find this article about premium bonds by Martin, edited last month, very helpful. 

https://www.moneysavingexpert.com/savings/premium-bonds/

You could just give the children money - you can get some really nice money wallets these days. 

I remember always wanting gifts, rather than money or clothes or sweets as a child but premium bonds are so vague - there isn't anything to show really and they are very poor at generating prizes if you don't have lots of them. I don't think - generous though your idea is - premium bonds are a very exciting gift for anyone and certainly not for children. At least with money they can get something they really want. Or they can open their own savings account, it's a much better way of gifting, in my opinion anyway. 

My daughter was given £100 in premium bonds as a child and although she was very grateful to have received such a generous amount, none of us could never see the point. No interest gained, no prize ever won. She kept them for 20 years but recently cashed them in and enjoyed spending the £100.

olgadapolga

Probably won't be appreciated by the children, they'd most likely prefer cash! The parent may be more appreciative though. 

My children were given £100 worth of premium bonds each when they were born. We were pleased about it but the children, being babies, didn't care. Over the periods of 21 years, 18 years and 17 years, they have won £50, £25 and £25 respectively. They only really found out about the bonds when they won and when we had to get the bonds put in their names.

Hadenoughofitall

Let kids be kids. They can't play with a premium bond.

Raf_3

Speaking as someone with two kids, I totally get the motivation of wanting to avoid giving toys.

We have shelves heaving with plastic tat and unplayed board games and the last thing they really need is any more.

If someone were asking about gifts for my two, I would ask them for something that is used once and then done. Tickets for a day out or a show is nice. Voucher codes for video games are a surefire hit in this house.

Or, to keep it super simple, a book. Something like the Guinness World Records is always great fun.

beaker141

My mum bought £100 per year, at Birthday time, for my kids (I'm not sure she was happy I had 4 ultimately), and at aged 16 when they pass to the childs name she topped it up to £2000.  My eldest still has his at age 19, at Uni, and I think he really appreciates it now as an extra £2k buffer to either help him through Uni, or keep for something worthwhile. 

Other relatives generally bought standard presents, generally played with once or twice and are now in the tip somewhere. 

I'd vote premium bonds all day long - although the kids dont really understand what they are !

REJP

Ask parents what children would like for presents.  There is no age given for the children concerned.
I give my young great grandchildren money which the parents put into a savings account that can be used later when old enough to understand what they would like to do with it.
I don't think children would really appreciate the gift of Premium Bonds, just because you don't like the reasons stated for not giving gifts doesn't mean you have to deprive a child of the pleasure of opening a package with a gift inside.
perhaps when they understand what Premium Bonds are you can discuss it with them.  Until then don't make them follow your own beliefs.

REJP

I meant to add in my post that I ask the parents if the children should have gifts or cash to save or spend on something they would like.  The parents started the savings accounts in the first week after the children were born and I send cash for birthdays and Christmas.

Bonnypitlad

What a good idea!
 I note that most parents agree about the fleeting moment of enjoyment of a toy, quickly move onto next present, ignore it on a shelf or in a garage, ....ends up on a tip!
Consumerism gone mad
Imagine the joy of the child if they won a prize in the future 
A never ending lottery ticket?

Marcon

WIthout knowing the ages of the children, or the budget involved ('small gifts' could mean anything!), it's hard to suggest sensible alternatives. Very young children are simply going to notice that, in their eyes,  they haven't had a present from you! Tickets for the local panto or similar, perhaps? Alternatively, could you buy some sort of family present, either of the edible variety or possibly something like an amaryllis bulb - fast growing, spectacular and the parents will like it as much as the children.

CapeTown

Marcon said:

WIthout knowing the ages of the children, or the budget involved ('small gifts' could mean anything!), it's hard to suggest sensible alternatives. Very young children are simply going to notice that, in their eyes,  they haven't had a present from you! Tickets for the local panto or similar, perhaps? Alternatively, could you buy some sort of family present, either of the edible variety or possibly something like an amaryllis bulb - fast growing, spectacular and the parents will like it as much as the children.

An amaryllis bulb. What planet are you on. What child has ever said ooh I really want a bulb for my Christmas present!  Get the children classic toys or if they are older something that they will need as adults. Premium bonds are ok but not very exciting. I asked my nephews what they wanted every year. It was usually  Lego or Brio . When I asked their mother she would say a book or something rather bland.