Saving versus spending at Christmas time

Parents looking to snap up the must have Christmas toys for 2011 for their children could save up to almost £13,000 over 16 years if they invested this money in savings instead, according to new research by Lloyds TSB.

Must have toys vs. savings nest egg

Parents considering investing in this year's must have toys could end up shelling out over £600 to get their hands on the top twelve Christmas toys for 2011 with the most expensive toy on the list coming in at £91.99. However, if this money were to be placed in the Lloyds TSB Young Saver account for each year over a 16 year period, parents could see this nest egg for their child grow to almost £13,000 (£12,555), having earned almost £3,000 (£2,893) in interest alone.

For families looking to put just a little aside at Christmas for their child's future savings pot, just saving a third of this outlay each year over 16 years would see a savings pot of nearly £4,000 (£3,766) build up, including interest of almost £900 (£868).