Christmas Accounts
It was only when I began researching Christmas savings over the past month that I became aware of Christmas accounts. Obviously, we’re going to have a hard time putting them to any use before this Christmas. But what about next year’s Christmas? The best time to get on top of next Christmas is now, before the memory of the event fades away and we don’t make any positive changes to how we approach Christmas financially so we can enjoy the festive season properly.
What Is A Christmas Savings Account?
The first one was set up early in the 20th century but they came to prominence in the first couple of decades. Why? Because with world wars and depressions, finding the money to celebrate Christmas was no mean feat. So, throughout the year, people made weekly contributions into their savings accounts, an amount which was returned to them at Christmas to help with gifts and food. The concept has remained unchanged; there’s no minimum amount to start the account and no set amount of deposits; that remains up to you. It is, of course, possible you could set up a Christmas account in a fervour of good intentions and put nothing in it, but having a place to actually put your money is a huge incentive to start saving early. It’s just part of any other savings project, and ten or twenty dollars a year is going to be a massive bonus come the end of the year.
When Can It Be Accessed?
Generally, the money becomes available around the start of November until the start of January. That gives you time to buy all your Christmas goodies (and take advantage of post-Christmas sales if so inclined) without having to resort to a credit card. There’s usually a fee attached to any early withdrawals, and that should only be done if the need is dire.
A Good Savings Measure?
I think a Christmas account is a fantastic way to take the stress out of Christmas and enjoy it properly. It’s also a way of avoiding Christmas as a source of financial distress, and saves you from overusing your credit card or relying upon credit heavily over January to get you over the line. Of course, the amount of money you have saved in your Christmas account doesn’t have to be the amount you spend. Budgeting is still an important measure, and any money you have left over can go towards next Christmas or bolstering a repayment on your credit card.
When To Set It Up
Now. I know we’ve all got a lot to do over the coming week, but it’s crucial to set up the Christmas account when the need is still fresh in your mind. Ten dollars a week, in reality, makes little difference to our quality of life but it will stop Christmas being a financial blip and can return it to being a special event to share with the people you care about. Most banks have Christmas accounts, so check with your bank about what they can provide. It’s worth shopping around to see if any accounts can offer you a higher rate of interest.
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