Saving for Holiday Spending
It can be easy to go overboard on holiday spending and start the new year feeling overwhelmed by credit card debt.
You’re not alone – 70% of Americans say they feel stressed about their expected holiday spending.1
So now is the perfect time to create your financial plan for the holidays! Follow these tips to save for purchases and avoid overspending during the holiday season.
Create your holiday budget
• Determine your gift recipients (remember, you don’t have to buy something for everyone!)
• Project how much you plan to spend on gifts – it might help to look at what you spent last year.
• Don’t forget to include other holiday expenses, like charitable donations, food, clothing, and travel.
Start saving now
• Designate a savings account for holiday spending.
• Calculate how much money you need to set aside each week to hit your spending goal in time for the holidays.
• Set up an automatic savings plan to transfer money from your checking account into this savings account.
Make a plan for paying off your debt
• If you use a credit card for holiday spending, make a plan to pay off the balance before any interest charges are assessed.
• If you know it will take longer to pay off your balance, add that amount to your everyday budget so there’s a clear plan in place.
Avoid overspending
• Track your spending and stick to your limits – once you reach the limit you set, stop!
• Curb your impulse spending by only buying what’s on your list.
• Look for coupons, codes, and deals – you may be able to save money just by keeping your eyes open!
• Identify how to trim travel expenses – can you save money by driving instead of flying?
• Consider gifts that either don’t cost money or cost less – think about a baked goods exchange with groups of friends or giving the gift of your time.
1 https://dadavidson.com/News/ArticleID/3761/D-A-Davidson-Survey-Reveals-Credit-Card-Debt-and-Financial-Stress-Are-on-The-Rise-This-Holiday-Season