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The holidays are a time for giving, but the generosity of the season causes many people to overspend. This financial mistake could even follow you to the next year, as putting gifts on credit cards can result in high interest payments, and draining your savings account may leave you without the resources to handle future emergencies. To enjoy the holidays without breaking your budget, follow these tips.

How to Make Smart Financial Decisions During the Holidays

1. Make a List

Last-minute purchases and impulse buys can drive your holiday spending up, blowing a hole in your budget or putting you in debt. To keep your spending in check, make a detailed list of all your planned purchases before going shopping, and avoid buying anything you haven’t budgeted for.

2. Start Early

savings accountTaking care of your holiday shopping early not only reduces stress, but it can also save you money. As the holidays come nearer, prices often rise as selections dwindle, potentially forcing you to spend more than anticipated.

3. Plan for Activities

Gifts aren’t the only holiday cost to consider. For many people, the season is also filled with dinners, winter adventures, and other activities that can cost more than you can comfortably spend. When calculating your holiday expenses, don’t forget to include the prices of these outings, along with the cost of office parties and school events.

4. Save in Advance

Opening a savings account dedicated to holiday spending allows you to buy the gifts you want without incurring unnecessary debt. When you aren’t putting money away for the holidays, you can always use the savings account to fund family vacations or other major purchases.

 

For more than 80 years, The Missouri Bank has helped people throughout Warren, St. Charles, and Gasconade counties achieve their financial goals. As a local financial institution, they offer friendly, personalized service to every customer, along with the financial services you’d expect from a big national bank. Visit their website for more on their savings accounts, follow their Facebook for more tips and advice, and call (636) 327-4900 with any questions you have.

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