Jingle Bells, Jingle Bells, Saving All the Way

The final days of summer means scheduling those last-minute beach trips and spending time in the sunshine before the leaves turn red. It’s also a good time to set up a savings plan for the holiday season. Give yourself the gift of preparation this year to reduce stress and create a jolly time with your loved ones.

Create a Plan in Advance

It’s never too early to create a financial plan for the holiday season. No matter if it’s New Year’s Eve the year before, the sooner you prepare will provide peace of mind throughout the year. The holidays can be a stressful time when people resort to opening or exhausting credit cards to purchase presents. If you work the holidays into your budget and don’t overspend when the holidays arrive, it will reduce the financial strain.

Set Up a Separate Savings Account

Consider putting away a small amount money from each paycheck in a separate savings account with your financial institution. A savings account that earns a higher interest rate, like Workers Accelerate Savings, is a great option. Just $20 per paycheck can add up with consistency. Some banks and credit unions including Workers Credit Union also have Holiday Clubs, which are savings accounts that automatically transfer funds into a different account. When your payout date arrives, we transfer your money directly into your checking account for use. This helps to take your mind off the savings, so you can live in the moment. Some companies even offer a payroll deduction for holiday funds.

Spend Within Your Means

It can be easy to overspend on expensive presents. When you create a plan and put away money into a savings account, spend what you have. Credit card debt poses the risk of high interest rates that can put you into a stressful situation for months or years after the holiday season. Consider purchasing or creating sentimental gifts that won’t break the bank. Spending within your means will help you avoid impulse buys.

The holidays should be a joyful time spent with friends and family. Workers Credit Union offers products and services to help members achieve financial wellness in their daily lives.