Saving for Christmas Early isn’t Crackers!
The tinsel is back in the attic and the thought of preparing for next Christmas may sound crackers but January is the best time to start preparing, financially, for the next festive season.
By starting early, a relatively small amount of money each week makes Christmas much more affordable – and for that matter enjoyable.
A typical household spends an extra £500 in December according to the Bank of England, which is difficult to pay for with a single month’s wages.
But if you put away just £10 per week at the start of the year then you could have it covered.
- Set a budget: Take a deep breath and examine your December and January bank and credit card statements to see how much you spent over Christmas. Are there any areas you can cut back on next time? Make a list of family and friends you will be buying presents for and allocate an amount for each. Consider how many people will be coming over and how much you will need to spend on food and drink.
- Work out how much to save: Once you have an idea how much you might need for next Christmas, decide how much to save each month. It’s better to commit to a manageable amount than to aim too high and give up. Even £5 a week could give you £250 come December.
- Consider starting the preparations now: January is a good time to pick up Christmas essentials in the sales. You could buy a present per month to help spread the cost and reduce the stress of last minute shopping.
- Resist temptation with a dedicated Christmas savings account: When you start a credit union Christmas savings account you can lock away your money until you start your festive shopping. As with all deposit accounts in a credit union, your savings will be protected up to £85,000 under the Financial Services Compensation Scheme – unlike some Christmas Clubs.