The holidays may be the most wonderful time of the year … but they can also be the most stressful for your finances. As you’re enjoying time with family and friends, shopping for the perfect gift and making donations to your favorite charities, sticking to a budget may be the last think you want to think about.
While it can be tempting to forget about your long-term financial goals and just enjoy yourself, it is possible to stick to your plan and still have a happy, joy-filled holiday season. Here are some ideas to help you stay on track.
Set a Limit Before You Shop
Establishing a spending limit before hitting the stores—and sticking to it—can help you stay within your means when you shop. It’s important to think about how much you can afford to spend before the expenses start piling up.
We offer a special holiday savings account to help you save throughout the year for holiday expenses. There’s no minimum balance and no maintenance or withdrawal fees. On Oct. 15, your savings are moved automatically to your primary checking account, so the money is there when you need it.
You might also want to consider using a personal loan or line of credit to cover the cost of gifts and holiday entertaining. If you need a little extra cash during this busy shopping season, give us a call at 904-777-6000 or 800-445-6289.
Tell Your Loved Ones About Your Budget
You’re not alone in this holiday budgeting adventure. Many people try to reign in their spending at this time of year, so don’t feel bad about communicating that you may not be able to spend as much as you’d like to. In fact, it can be an exciting challenge to find great gifts when you have a limited amount to spend.
This is also a great time to set clear expectations within your family about what you can afford. Being straightforward with your kids about how much you can spend on gifts — and how overspending during the holidays might affect next year’s summer vacation — can be a great way to teach them about money management and setting financial goals.
Do Your Research Before You Shop
Make sure to scope out the best deals before you buy. Check out the holiday ads on sites like TheBlackFriday.com, which lists Black Friday and Cyber Monday deals for many major retailers.
If you’re not a fan of the hustle and bustle of shopping malls, many online sales are as good as (if not better than) the ones in stores. Just remember to protect yourself from scams and fraud when you’re shopping online.
Watch Your Credit Card Spending
Credit cards are convenient, but if you’re not careful about how often you’re using them during the holidays, you may feel like the Grinch when you get your monthly statement. Through our Online & Mobile Banking, you can set spending alerts that notify you when you’re going over your budget so things don’t get out of hand.
Whether you apply for a new credit card or use one that you already have, make sure you’re aware of the interest rate. Many store cards have a 15-to-20% APR, so if you’re finding it difficult to pay off your cards, you may want to consider a 0% APR balance transfer or consolidating your debt so you can pay it down faster. You can also take advantage of your credit card rewards to help offset some of your spending.