Sinking Funds and Savings Goals: Planning for Irregular Bills and Big Purchases

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About Course

Car insurance, the MOT, school uniforms, birthdays and Christmas often arrive as large bills that upset a monthly budget. This course shows how to use sinking funds to spread predictable costs, how to set clear savings goals, where to keep the money, and how this differs from an emergency fund.

This course gives general budgeting information. It is not financial advice. For help with your own situation, contact MoneyHelper or a free debt advice service.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.

What Will You Learn?

  • Explain what a sinking fund is and how it differs from an emergency fund
  • List and estimate your irregular costs for the year ahead
  • Work out how much to save each payday, with a worked example
  • Choose where to keep savings and automate them

Course Content

Course Lessons

  • What a sinking fund is
  • Working out how much to save
  • Setting goals, choosing accounts and automating

Sources & Further Reading
The official guidance this course is based on.

Final Assessment

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