When the winter storms hit one after the other, I thought Spring was far out; I would never see a bloom on a tree again. But now it’s almost summer! The point being that time goes by quickly and before you know it, it’s time to start your holiday shopping. Are you prepared to spend money on gifts this year? Saving for holiday spending early is likely the best strategy to reduce credit card debt.
Saving For Holiday Spending Early – What You Should Do
There are many ways consumers can start saving for holiday spending early while still enjoying the summer months. The trick is to make small changes now to avoid breaking the bank this holiday season.
- Open a “Holiday” Account – Many banks have a “Christmas Club” account intended to help people save for the holidays. Consumers can start putting money into the account each month. The bank only allows you to withdraw money from the account on a certain date. Therefore, you are not tempted to take out money prior to the holidays.
- Start Shopping Now – Plan your gifts ahead of time for people and buy them before the holiday rush. Although Black Friday and Cyber Monday deals may seem great, many retailers are having the same sales around other major holidays. This allows you to spread your shopping expenses out.
- Holiday Budget – Creating a holiday budget now can help you stay on track until December. When budgeting, consider if you will be hosting a party, how many gifts you will be buying, or how many parties you usually attend. ACCC provides both a holiday budget worksheet and a holiday shopping checklist.
- Save for a Goal – ACCC’s Saving for a Goal financial calculator can help you determine how much you will need to save on a weekly, bi-weekly, or monthly basis. That way you can start putting money aside now, and start saving for holiday spending early. You will also need to estimate what your budget will be to plan out your savings timeline.
- Credit Card Points – If you use a credit card with reward points throughout the year, keep track of your points and use them for gifts or gift cards during the holidays.
Make use of these tips to start saving for holiday spending early. If these expenses are restricting you from reducing credit card debt, speak with a certified counselor at ACCC to get help! Call 800-769-3571.