Have you ever used a layaway plan for Christmas shopping? We used to do this all the time when the kids were little. We'd start putting up various toys and things and paying them down. It's Handy for getting a little early holiday shopping done, and not having to have all the money at once. It beats the heck out of using credit. No debt and no interest!
I agree with the above post, layaway is one heck of a lot easier on the budget than any form of credit that I know of. Also, it comes in handy when your kids want hard to get items that you have to grab when they are first put on the shelves. Sometimes you might not have enough money set aside the minute that stuff goes out, but thanks to layaway, you can reserve those gifts by putting a little down and paying the rest off as you can. Make sure you start early enough with layaway to fulfill all the payments before it is due, and also make sure that the store honors sales that go on after you have put the item in layaway. Its happened to me that an item will be put on layaway at full price and then go on sale a week before its paid out.
Ah, yes, I didn't think to bring that up. That is an excellent tip, @AnnMarie. I don't think I'd bother with a layaway plan that didn't honor sales prices. It's very annoying to find that you paid, or are paying, more for something than you needed to pay. I'd probably remove the item if they wouldn't honor the sale (if they allow removals). It definitely pays to make sure you understand the store's policies for layaway purchases in advance.
I have used lay-away many times to help get my Christmas shopping done. I used it last year for my purchases and was very happy I did because it helped me to get better gifts for my family. I think I will do the same this year and get started soon so that I can get what I want and not have to worry about having time to pay for all of the items.
When I was new in the office and earning small, I would buy items on a layaway basis. It is like saving money for the Christmas gift and the only difference is I give the money to the vendor instead of putting it in my piggy bank. But come Christmas time, I have gifts for my parents and my siblings too courtesy of the layaway plan.
Unless the item is something that will be hard to get as the holiday approaches, I wouldn't bother with layaway personally. You can just as easily put money aside throughout the year, so you will have it ready to go when it's time to shop for Christmas. My folks always started a "Christmas Club" account at their bank each year to save money for Christmas shopping. They would also create "Christmas Club" accounts for my sister and brother and I as well, so we could get some gifts for each other (this was before we were old enough to start working and earning our own money).
Layaway is a good way to get what you want without paying interest. I have not done any layaway yet. I'll look into it for the future.
My mom used to have a Christmas Club account as well. Is that still even a thing? I used to see notices at banks for such accounts, but I don't remember having seen any in recent times. That would probably be a good idea. I still like Layaway though, if the policies aren't stupid, and if the store I want to shop in offers such a system. I like being able to shop when it's convenient for me, and just put things aside as I shop and pay for them over time. I also think it would be a much better plan for those who tend to get caught up in the moment and end up running up their credit cards. Start a little earlier and avoid paying interest.
