Preparing for Holiday Spending

The holidays don't have to be hard on your wallet! Things can be easier if you manage your finances. First, you'll need to learn to budget. Review your household budget to determine how much you can afford to spend, and stay within that budget.

It’s also a good idea to make a list showing the people you need to buy gifts for, and then budget for each. And be reasonable with your budget. If there are five people you need to buy a gift for, it might be okay to spend $50 on each of them. But if you need to buy something for twenty people, spending $50 on each of them might blow your budget.

Plan ahead and identify the exact source of your spending so you know where your funds are coming from, whether that’s a savings account, checking account, or if you will need to use your credit cards this season. If you’re planning to use credit cards, be sure to check the rates on your cards, and compare rates. You might find a better rate than what you’re currently paying.

It’s also smart to avoid last minute shopping. If you start shopping early, you may find some great discounts! And if you can find coupons, they can save you even more money!

You could also look for special holiday loans if think you’ll need some extra funds this season. Some institutions offer a low fixed rate holiday loan to help cover those extra expenses, like New Horizons’ Santa’s Helper Loan at 6.5% APR. When you start a Christmas Club savings account for next year, all you have to do is set aside as little as $10 a week, and that will give you a $500 head start when December rolls around next year. With direct deposit and automatic payroll deductions, it makes it easier – out of sight, out of mind. And remember, it’s never too early to start saving for next Christmas.

For more information, please visit www.newhcu.org .

Sponsored by New Horizons Credit Union