It’s Never Too Late To Start Saving For Christmas
Start A Christmas Club Account To Get Started!
While you just finished taking down your decorations, packed away the tree, trimmings, etc., it’s time to start saving for next Christmas.
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Not the gift lists, shopping, or parties just yet, but rather the spending and more specifically, the saving!
According to the National Retail Federation, consumers expected to spend an average of $1007.24 on the holidays this year.
For most, that’s a lot of money to come up with and spend in the few short, busy weeks leading up to the holidays.
Holiday spending often pushes many individuals and families over their normal monthly spending capacity.
As a result, those without planned savings often find themselves turning to credit cards, payday companies, or other short term, high-interest loans to make up the difference.
However, there is a stress-free option to help you avoid this costly pitfall.
All it takes is a little effort and just a bit of planning now to help you avoid next year’s “holiday spending hangover.”
Start Saving For Christmas By Opening A Christmas Club Or Holiday Savings Account
Ask your banker about a Christmas Club or Holiday Savings Account to start saving for Christmas.
These accounts are specifically designed to help you set aside money for your holiday shopping.
The idea is to stash away a small amount throughout most of the year so you have a holiday nest egg ready to spend before the Black Friday ads are “leaked.”
It’s a holiday cash layaway!
The sooner you begin making weekly deposits, the less you have to stash away each week to meet your savings goal and the more you will have saved and ready to spend on your loved ones.
For example, if you open an account in January and deposit as little as $25 each week, you will be able to save over $1000 by November 1st.
Best of all, you don’t need a lot of money to open and set up this type of account and you can schedule small, regular, automatic transfers from your checking account to keep it hassle-free.
Be sure to compare account features to make sure you’re choosing the right account for your needs.
The best Christmas club or holiday savings accounts pay a nominal amount of interest, have no monthly fees, and offer free automatic savings options.
Stay on track.
To help discourage you from dipping into your holiday savings, most of these accounts will also limit and/or charge a penalty fee for early withdrawals.
This way you are less tempted to want to use these funds too soon.
The holiday season is a time for celebration, not a time to stress over holiday spending.
However, if a Christmas Club is not for you, there are many other ways to save with minimal effort.
For example, you could open a traditional savings account at your bank dedicated to your “holiday spending” money and set up a weekly or biweekly automatic transfer from your checking account.
Alternatively, if you have a bonus or large overtime check you want to stash away for Christmas shopping, you might want to consider opening a certificate of deposit.
Many banks offer short term CDs.
With this option, your money is locked away for a set period of time.
However, the downside is that you’ll have to deposit the full amount you want to save upfront.
Regardless of what account or savings option you decide is right for you, the most important thing is to plan ahead and dedicate money for the holiday season.
Any type of savings account is a step toward financial security, and can ease your stress over holiday spending so why not start saving for Christmas now?
Image ResourceNever Too Late To Start Saving For Christmas by Tonza Borden