Sounds simple right? In theory, yes. But there is a little more to it than that. How the dollar a Week Savings Plan works is this. Note: It should be called Planned Spending, but a "Planned Spending Plan" sounds kinda weird.
Week One: Deposit $1 in savings account. Total saved = $1
Week Two: Deposit $2.00. Total saved = $3
Week Three: Deposit $3. Total saved = $6
Ok, get the idea? Where it gets interesting is in weeks 30 and up.
Week 30: Deposit $30. Total saved = $465
Week 31: Deposit $31. Total saved = $496
Let's skip forward a few more weeks.
Week 50: Deposit $50. Total saved = $1275
Week 51: Deposit $51. Total saved = $1326
Week 52: Deposit $52. Total saved = $1378
Now if you add in the measly interest that whatever bank you deal with gives you on your deposits, it's easy to imagine that this plan could give you a healthy amount for your Christmas spending (or goal of your choosing).
I think I'm going to adopt this plan for my Christmas Account. My goal is to have $1500 saved by December 2, 2011. If I use the Friday in any given week as my deposit day, and use Friday December 2nd as my goal date of week # 52, I should have $1378 in the account, ready for spending! I used a really scientific formula ( I used a calendar and counted backwards), I figure that this Friday, April 15th, I should be on week # 19.
Week 19: Deposit $19. Total Saved = $190
Obviously, I'm not there yet. But I will deposit at least $19 into the Christmas account by Friday. I'm aiming to be caught up with this account/deposit schedule by May 27th, Week # 25.
Week 25: Deposit $25. Total Saved = $325
When I get caught up and maintain this deposit schedule, I will be on track to have $1500 by December 2nd. The difference of $122 (between my goal amount and how much will have been saved using this method) should be relatively easy to come up with by that time.
Do you use any schedules or plans to save for things, other than just depositing a percentage of your pay into your savings accounts?