Over a third (35%) of the UK population is planning to gift cash for Christmas this year rather than a traditional present, according to research from pensions and insurance provider Friends Life.
People in Scotland and the West Midlands are most likely to gift cash, says the research, which also shows that on average, people will give £114, while one in twenty (5%) will give between £200 and £500.
Giving cash is often related to helping loved ones financially, says the research. Respondents say they sometimes give money to help with both immediate financial issues and long term savings. One in ten (9%) of 25-34 year olds says they have been given a contribution to a pension as a gift at Christmas and received contributions worth up to £2,000. Some gift givers say they are also helping out with mortgage costs.
One in 10 men admitted they preferred to give financial gifts simply to "relieve the stress of shopping", while over a third of people who gift money prefer it because it means the recipient can buy what they really want. A quarter of people (25%) believe a financial gift will be better received than a traditional one.
Lindsay Forster, consumer marketing director at Friends Life said: "'Christmas is a time for giving and our research shows that increasingly, people are opting to give money so the recipient can make a choice on how they use it. It's a great opportunity to help your loved ones think about how they manage their money, giving cash can help people to save towards things they really need."
Cash and gift vouchers are the most popular financial gifts with 32% planning to give gift vouchers. People are most likely to give money as a gift to their children (28%) with one in seven (14%) giving to nephews or nieces and one in ten (9%) to siblings.
When it comes to how and why people are planning to gift money this Christmas, the research found people want to contribute to large expenses and to help ease financial strain. One in 20 (5%) plan to contribute towards their loved one's mortgage costs, while one in ten (10%) of those over 55s plan to give money to help someone in financial difficulty.
Regional breakdown: People in the West Midlands and Scotland most likely to have received cash as a present at Christmas