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You and your money
With signs of spring all around us, it may seem strange to be talking about Christmas and all the extra spending it causes. Yet now is the best time to start saving regularly so that when it comes it doesn't throw your family's finances into turmoil. Just £5 a week put aside from now to early December would give you £150 for Christmas extras, or £300 if you can manage to put aside £10.
What are the options?
You could use a tin box under the bed. But if you're serious about Christmas saving you really need to put the money out of reach, otherwise it's easy to "dip in" when unexpected bills arrive or you fancy a treat. There's also the risk of having your hard-earned savings stolen.
Supermarket savings stamps are easy to buy when you go shopping. Some give a bonus when you fill the card. Remember, though, that you'll have to spend whatever you've saved at that store, so it limits your ability to shop around for the best prices.
Hamper clubs used to be popular. But Christmas 2006 was ruined for many families when a well-known club collapsed and people discovered they were not regulated and therefore not covered by the Financial Services Authority's compensation scheme. The same applies to informal savings clubs or "diddlums".
For a safer option, why not try joining your local credit union's Christmas Club?
They are properly regulated, just like banks and building societies, not run for profit and offer a choice of ways to pay in. Often they pay a useful bonus (the "dividend") on all savings at the end of the year.
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