The holiday lights and decorations are tucked away in your attic or garage. Holiday music has stopped playing at your local mall. You’re no longer scouring the internet or stores for the perfect gift. And all the holiday guests have left. Phew! Let’s talk about the 2024 holiday season. Now is the perfect time to start saving money for this year’s end-of-year celebrations. Establishing a holiday savings plan today can alleviate financial stress, keep your spending on budget, and enhance your overall financial well-being. Here are 9 benefits of starting your holiday savings today.
- Avoid last-minute financial strain: Saving now helps you avoid the stress and financial strain of last-minute holiday shopping. By saving consistently in a dedicated holiday account over months, you can reduce the burden on your budget and enjoy the festive season, knowing you have the funds you need to cover your expenses. Our Holiday Club account offers an industry-leading 2.00% APY* with no monthly fees or minimums to open, making saving effortless and rewarding. That’s what we call holiday joy.
- Budget and plan: Saving for the holidays enables effective budgeting and planning. You can set a realistic budget for gifts, decorations, travel, dining out, and other holiday expenses. A well-thought-out plan increases the likelihood of staying within your financial means and avoiding overspending.
- Accumulate funds gradually: Building savings throughout the year is more manageable and less disruptive to your monthly budget than trying to set aside a significant amount of money all at once closer to the holidays. Putting $25 into a holiday savings account each month for ten months will impact your budget, but it can be much easier to manage than a $250 budget hit at the end of the year.
- Take advantage of sales and discounts: Early holiday budgeting enables you to take advantage of sales and discounts throughout the year. For example, you can save big when buying winter clothing at the end of the season. Or a barbecue in July. By staying alert for deals on gifts and decorations (especially after-holiday sales), you can make purchases at discounted prices, ultimately saving money compared to buying everything at full price during the holiday rush.
- Create a dedicated holiday fund: Opening a holiday savings account ensures your money is earmarked for holiday expenses. This helps you resist the temptation to dip into these funds for non-holiday expenses.
- Reduce credit card debt: Saving now can minimize the need to rely on credit cards or loans to cover holiday expenses. This proactive approach helps prevent building high-interest debt, allowing you to enjoy the holiday fun without the looming burden of post-holiday stress when the credit card statements arrive. The last thing you want is to spend this year paying off last year’s holiday expenses or repeat this negative spending and debt cycle annually.
- Enjoy flexibility in spending choices: Saving in advance enables you to make mindful spending decisions. You can allocate funds based on your priorities, whether purchasing meaningful gifts, traveling to see family and friends, or creating a memorable experience with loved ones.
- Jump-start your savings habits: Once you get into the holiday savings habit, you’re more likely to keep at it once the season is over, positively impacting your financial well-being. With your holiday savings account established, you can work on your other financial goals.
- Experience a stress-free holiday: Perhaps most importantly, saving early and knowing you have funds safely set aside contributes to a stress-free holiday experience. You can focus on the joy of spending quality time with family and friends rather than being preoccupied with financial concerns.
Final thoughts
There are many benefits to saving money for the holidays at the start of the new year. From avoiding financial stress to promoting disciplined saving habits, early planning sets you up for a more enjoyable and financially responsible holiday.
Learning more about and opening a Holiday Club account or any of our Savings accounts is easy. Visit us online, at the branch nearest you, or call 800.877.2345 to get started. Allow us to be the first to wish you happy holidays 2024.
*APY = Annual Percentage Yield. APY is the annualized rate based on a compounding period of one year. When the deposited money earns dividends and the accumulated dividends starts earning dividends as well, we are talking about compounding. Fees could reduce the earnings on an account. All yields except Certificate yields are subject to change retroactively to the beginning of the month.
