A new survey released today by the Association of Investment Trust Companies (AITC) has revealed that almost half of 8-15 year-olds worry about how much their parents splash out on Christmas presents for them, and would rather some of that money was put aside for when they are older and really need it.

The findings should come as welcome news to stressed-out mums and dads, fighting their way through crowds to buy the latest toys and gadgets for their offspring.

The survey revealed that the majority of parents (43%) will spend between £100 - £200 per child on Christmas gifts this year, however 24% of parents will spend between £200 - £500 per child, and a lucky 4% of children will each receive gifts worth over £500.

Whilst over half (57%) of parents believe they are spending about the right amount on gifts for their children, 48% of children admit their parents spend too much on them at Christmas time.

This sentiment was echoed by nearly a third (31%) of parents who felt they spend too much on Christmas presents for their children. In fact, 40% of parents admit that they would prefer to put some of this money towards saving for their children’s future instead, and they are not alone – nearly half (47%) of children feel the same.

Annabel Brodie-Smith, Communications Director, Association of Investment Trust Companies (AITC) said: “We all love Christmas and giving presents is part of the festive fun – particularly where children are concerned."

"However it’s all too easy to sometimes spend more than we intend, but the message from our research is clear – even from a tender age, children are becoming increasingly aware of the need to save for their future."

"If you had invested £25 per month over 18 years in the average investment trust2 (a total investment of £5,400), your investment would have increased to £10,634 - a great financial start to adult life.”

How much are parents saving for children?

Some 30% of parents say they do not currently save for their children’s future, although some lucky children should be able to start adult life in a good financial position – over a quarter (27%) of parents said they save over £400 per year for each of their children. Interestingly, 61% of parents saving for children said they use a bank or building society account.

A car for university?

When asked what they would do with a lump sum if they were to receive one on their 18th birthday, a fifth of children were aware of the spiralling costs of university (19%) and said they would use that money to fund higher education costs.

However the most popular option was a car (26%), suggesting that if most would-be university students get their way, they’ll be setting off to university in their very own set of wheels.

15% were inclined to save the money until they most needed it, whilst the idea of travelling around the world only appealed to 10% of children. Some 6% wanted to spend the lump sum on a first property.

Annabel Brodie-Smith continued: “According to our research, 61% of parents who are saving for children use a bank or building society account. If parents are saving for their children for the next ten years or more they are potentially missing out on the long-term potential of the stockmarket."

"Investment trusts allow parents to access the benefits of the stockmarket over the long-term and can be an ideal way to save for children. By investing in a variety of companies on your behalf, they spread investment risk and many investment trusts offer excellent value for money, with nearly a third having total charges below 1% per year. Available from £25 per month or a £250 lump sum and with no penalties for stopping and starting, investment trusts are worth a closer look.”