How can I spread the cost of Christmas?
After the school holidays things are a bit tight and I’m beginning to worry about covering the cost of Christmas. Have I left it too late to start saving up?
Can you suggest any places that might be good to put a bit away? I used to do Christmas clubs, but I lost money when Farepak went bust and am now concerned about what might be best.
Shirley Graham, London
Cash Queens say:
You still have time to build up a bit of a fund to help over the festive season.
The more you can put away now, the less you may have to rely on expensive credit and be left with a New Year financial hangover – and pay out a small fortune in interest.
Putting away £5 a week from next week will give you £65 towards the Christmas shop – with 13 weeks up to December 14. Push it to a tenner and that’s £130.
You won’t get earth-shattering amounts of interest on that over the next couple of months – the best-buy easy access accounts currently include Coventry Building Society at 1.4% and Tesco Bank at 1.31% – but, earning interest is not the point.
Putting a bit away will ease the financial pressure and give you some sort of budget to work to.
You could also consider Asda’s Christmas Savings Card which offers a small bonus, depending on how much you save – £1 on £49, £3 on £97 and £6 on £144. You can pick up a card in store and need to register it online (this protects your balance if you lose the card).
You can add funds to the card at checkouts or the customer service desk. Qualifying amounts need to be saved by 5pm on November 18 and bonuses will be applied to cards on the 19th.
Alternatively, if you shop at Sainsbury’s, you could save up your Nectar points towards the big shop. You can boost the points you earn between now and October 9 as you get 10 times the usual number on selected purchases in the baby department (including nappies and toiletries), household (including laundry and cleaning products) and beauty and personal care.
If you have a Tesco Clubcard you can opt to be a Christmas Saver and use the points you receive at Christmas time. These can be topped up with cash savings of between 50p to £360, which can be made at checkouts and the customer service desk. On top-ups between £25 and £49.50 you receive a £1.50 bonus, £50 to £99.50 earns you £3, £100 to £199.50 gets you £6, and £200 to £360 gets £12.
The last chance to top up and receive a bonus is October 16. You will then receive Clubcard, top up and bonus vouchers in November ready for the bumper Christmas shop. Call 0800 591 688 for more info.