Easter is already upon us, meaning summer breaks, Halloween, and Christmas are just around the corner.
For many, this means it's time to start thinking about saving. But when is the best time to start putting money aside for festive spending?
According to financial experts, the answer is: as soon as possible.
Mark Weston, head of financial support at Santander, regularly assists customers facing financial difficulties, offering guidance on budgeting and financial optimisation. He emphasises the importance of saving year-round, regardless of financial status.
"Christmas is a typically big expense period...it’s therefore always good that customers save as much as they can and start as soon as they can," he says.
This "always-on" approach to saving is echoed by Lloyd Robson, head of savings at HSBC UK.
He encourages customers to incorporate budgeting and saving into their regular financial habits, not just for annual events like Christmas, but also for significant life milestones such as buying a home or retirement.
Mr Robson points out that starting early can reduce financial stress later and allows savings to accrue interest, further boosting Christmas funds.
"Depending on your financial circumstances, and your current savings priorities, saving for Christmas now may help alleviate financial stress further down the line," he explains.
"In addition to this, you can make your money work well for you, as any money you save between now and December will earn interest to contribute further to your saving goals."
How to make saving easier
“It’s really important for people to budget and know how much money they have and also how much they are spending each month,” Mr Weston says.
“This helps them get to grips with what their expenses are and therefore that will drive how much they can afford to save.
“It’s the small things, like how much you might spend on coffee each month and when you write that all down and calculate it, it can lead to both things you want to change because you recognise you’re spending a bit too much and it secondly gives you an indication of what you could save if you wanted or needed to.”
Next, see what you can afford so you don’t over-save and end up with less money, Mr Weston adds.
“I would advise customers to open a savings account. From researching, they can decide what type of savings account they want and what is most appropriate for them, whether that’s a normal savings account or an ISA where they can take advantage of tax-free interest.
“It will be dependent on the customer’s individual circumstances and what they feel appropriate but there are many ways to save.”
Mr Robson adds that creating savings goals can also make the process easier and can support peoples’ ability to stay focused.
“Once you have set a goal, you can then decide how much you would like or need to save and the timeline in which you want to achieve this,” he says.
“Lastly, pay yourself first,” he says.
“To ensure you can achieve your goals, it is important to prioritise your savings. A great tip is to pay money into your savings account as soon as you get paid, allowing enough money left to cover your ‘needs’ and ‘wants’ throughout the month, ie. mortgage and bills.
“If you can be consistent with how much you’re saving per month, we would suggest setting up a standing order to make this process seamless.”
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