Three months to the holidays: A simple savings plan

The holidays have a habit of sneaking up on us.

One minute it’s October, and the next you’re thinking about presents, food, travel, nights out and everything else that comes with the festive season.

The good news? Three months is still plenty of time to make a plan.

You don’t need to save a huge amount all at once. Breaking your holiday budget into smaller amounts can make the whole thing feel a little more manageable.

Here’s a simple three-month savings plan to get you started.

Step 1: Work out what your holidays could cost

Before you start saving, make a list of the things you expect to spend money on.

Think about:

🎁 Gifts

🍽️ Food and drinks

🚆 Travel

✈️ Flights or accommodation

🎄 Decorations

🎉 Parties and social plans

👨‍👩‍👧 Family activities

❓Anything else you normally spend on around the holidays

You don’t need to know the exact amount. A rough estimate is enough to give you a starting point.

Let’s say your estimated holiday budget is £900.

With three months to go, that’s £300 a month, or around £70 a week.

Breaking one big number into smaller amounts can make it easier to see what you’re working towards.

Step 2: Give your holiday savings a home

Keeping your holiday money separate from your everyday spending can make it easier to keep track of how much you’ve saved.

An easy access savings account can give you the flexibility to add money regularly and access it when you need it, subject to the account’s terms.

You could also look at whether your account allows you to set up regular or automated deposits, so money is moved into your savings automatically.

That way, you don’t have to remember to make the transfer every week or month.

Step 3: Break it down month by month

Here’s what your three-month plan could look like:

You could split each monthly amount into weekly payments instead.

For a £900 target, that’s roughly £70 a week over three months.

The numbers will be different for everyone. The important part is having a target and breaking it down into smaller amounts.

Step 4: Don’t forget about interest

If you’re putting your holiday money into a savings account, it may earn interest while you’re saving.

For example, an account paying interest could mean your savings balance grows while your money is sitting there.

The amount of interest you’ll earn depends on the account, the interest rate and how long your money is saved.

It won’t replace your savings plan, but it’s worth knowing what your money could be earning while you’re building your holiday fund.

Step 5: Keep track as you go

You don’t need a complicated spreadsheet.

A simple note on your phone can be enough:

Holiday target: £900

• October: £300
• November: £300
• December: £300

You can also keep a running list of what you’ve already bought or booked. This can help you see how much of your budget is left rather than relying on guesswork.

If you spend less than expected on one thing, you can update your overall budget rather than treating it as extra spending money.

What if you can’t save £300 a month?

That’s okay.

Your holiday budget doesn’t have to be £900, and your savings plan doesn’t have to look like the example above.

Start with the amount you expect to spend, then see how much time you have and what you can realistically put aside.

You could also separate your spending into must-haves and nice-to-haves.

For example:

Must-have

• Travel
• Accommodation
• Essential gifts
• Food

Nice-to-have

• Extra nights out
• Additional gifts
• New decorations
• Extra activities

This can give you a clearer picture of where your money is going.

A simple three-month holiday checklist

October

• Work out your rough holiday budget
• Make a list of gifts, travel and other planned spending
• Start your holiday savings
• Check what you’ve already booked or paid for

November

• Review how much you’ve saved
• Start buying gifts or booking anything you still need
• Maximise Black Friday & Cyber Monday deals
• Keep track of what you’ve spent
• Check your travel plans and costs

December

• Check how much is left in your holiday budget
• Finish your shopping and bookings
• Keep some money aside for last-minute costs
• Enjoy the holidays without losing track of what you’ve spent

The bottom line

The holidays don’t have to mean one huge bill landing at the end of the year.

Starting three months early gives you time to spread the cost, keep track of your spending and build up your savings gradually.

Work out what you might spend, break it into smaller amounts and give your holiday savings a separate home.

And remember, there’s no magic number you need to save. The aim is simply to know what you’re saving for and keep track of where your money is going.

TL;DR

• Start early: Three months gives you time to spread the cost of the holidays.
• Make a rough budget: Think about gifts, food, travel, accommodation and other seasonal spending.
• Break it down: Divide your total by the number of months or weeks you have left.
• Keep it separate: A savings account can help keep your holiday money apart from everyday spending.
• Automate it: If your account allows regular deposits, setting these up can make saving easier.
• Don’t forget interest: Your savings may earn interest while you’re building your holiday fund.
• Keep track: Check your progress and update your budget as you go.

Looking for more simple ways to manage your savings?

Explore our savings articles for more straightforward tips and information.