The holidays are around the corner and if you’re feeling extra jolly and generous this holiday season, your wallet could suffer the consequences. The good news is that it’s definitely possible to spread the holiday cheer without breaking the bank. We’ve compiled a list of tips for keeping holiday spending under control so your savings and bank account will thank you.
1. Make a budget and stick to it.
This may seem obvious, but budgeting for the holidays can provide a clear idea of how much you can afford to spend on holiday gifts and expenses before the season gets underway. To start budgeting for the holidays, use a budgeting app or spreadsheet. If you’re a Heritage Bank customer, you can use myMoney in our digital banking app to set up a holiday spending budget to track. Once you have a budget in mind, do your best to stick to it. This means being mindful of your spending, both online and in stores. It can be easy to get caught up in the holiday shopping frenzy, but try to resist the temptation to overspend.
2. Get creative with your gift-giving.
There’s no rule that says you have to spend a lot of money on gifts to show your loved ones how much you care. Instead of spending your whole budget on expensive items, get creative and give gifts that are personal and unique. For example, you could make homemade gifts such as bread or cookies or give family photos or scrapbooks. You could also give experiences, like Groupon activity gifts or teach a skill like guitar or computer lessons, etc.
3. Take advantage of sales and discounts.
If you do need to buy holiday gifts, wait for sales and take advantage of discounts whenever possible. This will help you stay within your budget while still getting the items you need. You can also use cash-back apps like Rakuten and websites to get money back on your holiday purchases.
4. Avoid using credit cards.
If you can, avoid using credit cards for holiday spending. This will help you keep your debt under control and avoid interest charges. If you do need to use a credit card, be sure to pay off the balance in full as soon as possible.
5. Start saving early and minimize spending elsewhere.
If you know you’ll be spending money on holiday gifts and activities, start setting aside money each month throughout the year, so you’re not caught off guard come December. Having a dedicated savings account for holiday spending can also help you stay on track. Also, you can try to keep a stricter budget surrounding other items during the holiday months, so you have a little more wiggle room for spending on holiday gifts.
By following these quick holiday budgeting and financial tips, you can enjoy a fun and festive holiday season without putting your finances at risk. So go ahead and spread the holiday cheer – your wallet will thank you!
Looking to set up a savings account? Reach out to a banker today to get started.
