Saving for Future Expenses

Because low-income families have such limited resources it may seem unrealistic to suggest saving as a money management strategy. However family expenses aren’t incurred evenly across the year, so families facing Christmas or back to school will be better prepared to cope if they can smooth out these ‘spending peaks’ by saving small amounts throughout the year.

If families have identified a spending leak, or can identify a small sum in their budget they can put aside, this can be directed towards predictable expenses as they come up.  This strategy will be most effective if the family can put the money aside at the beginning of the payment period, rather than trying to find it at the end of the fortnight.

Commercial Christmas clubs are one avenue for regular saving, but these limit the control families have over what is purchased with their money, and may not give the best value for money.

If families can save small amounts regularly, and quarantine it successfully, they will be less stressed at Christmas or other key events, and will experience the satisfaction of making their own choices about what to buy, ensuring that their children’s individual needs can be met rather than having to rely solely on strategies such as charity hampers.