Let’s talk about a Christmas savings account. Have you ever thought how you can lessen the impact of having to find money just before Christmas? Do you always get to the end of November and start worrying about where you’re going to get the cash from for Christmas? Rather than scrabbling around at the last minute, set up a Christmas savings account for yourself and save all year round.
What Is A Christmas Savings Account?
A Christmas savings account is exactly what it sounds like. A savings account specifically for you to save money to pay for Christmas. Having separate accounts to save for different things in life helps you organise and know what money you have where. If you have a current account, you should be able to easily open a savings account that is linked. With some banks you can even label your accounts to make it even more clear.
How Much Should You Save?
Once you’ve set up your Christmas savings account, the next step is figuring out how much you should save every month. If you know how much you usually spend on Christmas, simply divide it by 12 to get your monthly amount. Know your budget! Your financial situation might mean you’re better saving weekly. If that is the case, simply divide the amount by 52 to get your weekly installments.
If you can continue this, you’ll be able to easily save up for Christmas every year, without really noticing the money transferring from one account to another. Look at it as another bill. A sinking fund you’re paying into the less that blow at Christmas time. It will help you enjoy the festive season more as well, as you won’t be worrying about finances.
Benefits Of A Savings Account Over A Plan
You may have seen those Christmas saving plans advertised on the TV. Don’t be tempted in by them. Lots of people recommend them but I’ve seen people lose money in the past when the company has gone bust. The money you pay in, you then transfer into gift vouchers for specific shops. What if you only want to spend £4.50 at one shop and £47.99 at another? You’re going to be left with credit for stores you don’t use. You also won’t earn interest on the money you put in, like you would in your Christmas savings account with a bank.
You can dip into the money that you save in your own fund should you see something on offer during the year. If you know what Christmas present you’re going to get someone and you see it at a bargain price, having a fund you can use there and then is a huge plus point.
Get Ready For Christmas!
So what are you waiting for? Get that Christmas savings account set up today! Christmas comes around every year and we know exactly when it falls. If you can put some planning and preparation into place, you’ll be in a better financial situation, remove stress and be able to enjoy the festive season more. Happy saving!
