Book Board Chat

Good evening from Penn's Woods where after a couple of days with evening thunderstorms the heat and humidity have moved on. DH and I were at a book sale today. Lovely day for a drive.

I have a funny story to tell on myself about writing a book description but that can wait for now.

Irene @lovetohike and Curt @admin ~ Are you safe and dry? Is it flooding where you are? BTW Curt, the fix worked again for me yesterday but no such luck today. However, I realize with all the rain you are getting you may have much more important things on your mind right now.

Penny @oceanabooks ~ Have you heard from Kathy/rockymthigh? I didn't find her listed as a member of this board but she might be under another ID which I don't remember off the top of my head. You can email me privately if you prefer.

mysteryhorse After I posted I remembered about lay-away and that might be what the ads were for. I even forgot about layaway until one year emilabooks had posted she was doing some for Christmas gifts for the children.

June Kamm (dupo) I remember Christmas Clubs too. My dad had my brothers and I do them. An important first step for a child in learning to save and delayed gratification. I don't recall how much it was per month, but I know it wasn't even a dollar as the total amount after 11 months or whatever would have been A LOT. I am thinking that maybe we saved at a rate of .50 a month or who knows it could have been a quarter! I just remember the satisfaction of having my own money that I had saved to buy gifts from my parents and brothers.

In reading the Wikipedia entry (not the article below) I learned that the first known Christmas club started in 1909, when Merkel Landis, treasurer of the Carlisle (Pennsylvania) Trust Company, introduced the first Christmas savings fund. Carlisle is about 20 miles from where I live.

http://en.wikipedia.org/wiki/Christmas_club

Christmas Clubs still exist. Credit unions seem to have them more than banks, but some banks still do have them.

Are Christmas club accounts still a good idea?

Your mother probably had a Christmas club account at a local bank or credit union. You might remember her faithfully depositing $5 or $10 a week all year long to save up money for the holidays.

But is this simple method of saving for the holidays -- which reached their height of popularity in the 1970s -- still relevant today?

A Christmas club account -- which is not really a "club" at all -- is simply a special short-term savings account set up by a financial institution to encourage nest-egg building for the holidays. Most can be opened with a nominal deposit.

But there are few financial perks to be gained from Christmas clubs: The return on these accounts is negligible, and you usually cannot take the money out until the start of the holiday season, usually around Nov. 1.

The point, of course, is not to make a killing on compound interest, but to safeguard your money -- from yourself -- so you have enough funds to spend for gifts or even travel during the holidays. And it helps prevent a pile of credit card debt in January.

While some banks still offer Christmas club accounts, credit unions, by far, are still the champions of this type of savings vehicle. According to the Credit Union National Association, or CUNA, nearly 72 percent of credit unions run Christmas clubs, and consumer interest in these clubs is holding steady.

"These kinds of accounts, small as they may be, are important because they encourage saving; this small step could lead to better saving habits," says Patrick Keefe, spokesman for CUNA.

At TruStone Financial Federal Credit Union in Plymouth, Minn., there's been a slight uptick in its "Holiday Helper" account this year, says Katie Grindeland, marketing manager for the credit union.

"Now, I must confess, this number is up by less than 1 percent (over last year-BUT THE ARTICLE IS NOT DATED!!) but an increase nonetheless," she says. Balances are slightly down over last year.

Grindeland notes that while the original intent of Christmas clubs was to target savers, the appeal of other financial products such as money market accounts, rewards programs for credit and debit cards, and certificates of deposit have taken the shine off Christmas club accounts. But that may be changing because of the belt-tightening that has taken hold among American consumers: "The allure to budget and save is back," she says. "A revival and/or a customization of (the Christmas club account) may be what is needed."

Rest of article:

http://www.bankrate.com/finance/personal-finance/christmas-club-accounts-1.aspx

@lovetohike ~ Irene Sorry to hear that he could not swing it to come back for a family function, but you are right. Curt should not even think about coming to the East Coast during hurricane season. He is now batting 2 for 2!

Been thinking about @oceanabooks Penny in Delaware. Storm surges on the East coast are to be at their highest because of the full moon when tides are at their highest. I know she is an old-hand with hurricane preparations and seastorms but nevertheless, 'tis a worry.

Also thinking about @sareader Clare. According to the governor, the storm could cause the worst flooding that Connecticut has seen in more than 70 years. Reminds me of last year when @bethofvt Beth told us about what it was like in Vermont. Similar could happen in CT.