Note how much Christmas coin is under the tree

DISHING out cash for children at Christmas instead of a present can be an easy option but the amount given needs to be thought through carefully.

As children grow older, they often want to hit the stores themselves with cash in hand instead of getting a dud gift.

But experts say it’s critical children understand the value of a dollar.

New analysis from RoosterMoney, a global app that tracks pocket money given to kids, quizzed 6000 Australians and found children this Christmas will get, on average, $65 in cash gifts.

Lego is top of Santa’s wishlist, followed by phones and tablets.

RoosterMoney chief executive Will Carmichael said his company used 51 currencies on its app.

He said RoosterMoney also offered users stars – an alternative to giving kids cash.

“In Australia, we found the average amount given by a grandparent is around $34 but there’s people who give much more or much less,” he said.

“If you decide to give them cash instead of something physical, you have to think about what you want them to do with it.

“It helps quantify how much you give.”

Kids can work out what they want to do with it – whether it’s buying something they really want or putting it towards something they are saving for.

Rising Tide Financial Services managing director Chris Browne said giving cash was “convenient” but a limit needed to be put on how much you handed over.

“Don’t get caught in the trap of thinking that the amount given is a love scoreboard, because a thoughtful message in a card, combined with $20, is a relatively large amount when you’re 10,” he said.

“A great way to figure out how much you should give your child is to find out what they’re saving for, then make your contribution equal to 50 per cent of the item’s value.”

He also urged parents to only give “what you can afford”, to avoid putting yourself under unnecessary financial strain.

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