The average American family racks up over $1,000 in credit card debt over the holidays, which can take months to pay off and cost hundreds of dollars in interest. Fortunately, with a little preparation and a sound saving strategy, you can collect the funds to give your family a good holiday—without going deeper into debt. The tips below will help ensure your savings account is ready for the winter shopping season.
How to Save for the Holidays
1. Open a Dedicated Savings Account
As with any savings project, it’s important to separate your holiday funds from the rest of your money. A dedicated savings account, specifically for holiday shopping, will help you avoid accidentally spending it on bills, eating out, or other day-to-day needs.
2. Make a Shopping List
The first step to saving is figuring out how much you need, so decide early on what you want to get each of your family members and friends. Once you know how much you need to save, you’ll be able to develop a plan or modify your shopping list. Knowing in advance what you intend to buy can also help you avoid putting impulse purchases on your credit cards.
3. Track Your Spending
After calculating how much you need to put away every month, track your spending to make sure you’re sticking to the budget. Many apps connect directly to your checking and savings accounts, giving you a detailed look at your own spending habits. You might find new ways to reduce expenses and some corners you can cut to direct even more money into your holiday savings account.
With locations in Elizabethtown and Hodgenville, KY, Magnolia Bank is one of the area’s most trusted financial institutions. They pride themselves on combining the old-fashioned service you’d expect from a small bank with the range of services and convenience you’d get from a major national chain. Visit their website to learn more about their savings account options, or call (270) 358-3183 with any questions.