5 Simple Tips for Smart Holiday Spending

While the holiday season is a time of joy and togetherness, it can also bring a fair share of financial stress. The costs can add up quickly with gifts, gatherings, decorations, travel, and more.    

But don’t worry! There are steps you can take to keep your finances intact throughout this busy time of year.

Keep reading to discover five simple tips and tools that can help make the holidays more affordable and enjoyable.

1. Create a budget and stick to it

The first step in creating a realistic holiday budget is evaluating your spending from the previous year.

Once you know what you spent last year, you can start building your budget for the upcoming holiday season. Having a predetermined budget will help you avoid unnecessary purchases and debt.

You should also consider the timing of your purchases. Certain times throughout the year are better for taking advantage of sales. Two popular shopping days are Black Friday and Cyber Monday. However, if you start your holiday shopping earlier in the year, you can also look for sales around Labor Day.

Lastly, to avoid extra shipping fees, consider in-store pickup if available.

Ready to create a budget but don’t know where to start? Learn how the 50/30/20 budgeting method can help set you up for financial success year-round.

2. Set aside funds in a savings account

Setting aside funds in a savings account before the holiday season is one of the most effective ways to build up your budget for holiday-related expenses.

You should start saving at the beginning of the year. To start, estimate how much you need to save based on the previous year’s expenses. Then, divide this amount by twelve to know how much to set aside each month.

Also, when you open a savings account, you should choose one that earns dividends. This will help your savings grow faster.

At Connexus, we offer two different types of Savings Accounts. One is our Simply Savings Account, which offers nationwide access to fee-free ATMs and 24/7 account management with Digital Banking. You can also earn dividends when your account has a balance of $100 or more, helping you hit your savings goals sooner. 

The other is our Holiday Club Account, specifically designed to help you save for the holidays. With this account, you can set up automatic, recurring transfers and use your funds as of October 1—just in time for the holiday season.

Want to start saving for the holidays? Apply online today to open one of these accounts.

3. Avoid using high-interest credit cards

Credit cards seem like the obvious choice for holiday spending, right? They earn rewards and discounts. But be cautious because credit cards can have extremely high interest rates. If you can’t immediately pay off the entire balance, it can become unmanageable credit card debt.

A better alternative is a personal loan. With a rate far lower than the average credit card, you can use the money you borrow from a personal loan to pay for holiday expenses. Its fixed, low rates and affordable monthly payments will help save you significant money in the long run.

At Connexus, our Personal Loans offer competitive, low rates and a variety of terms, so you can choose an option that works for your budget.

4. Shop around for the best price

Whether shopping in-store or online, you should research the items you hope to purchase and shop around for the best price. Just because you find an item 30% off at one store doesn’t mean you won’t find it 40% off at another.

To help you find the best deals, you should use a price comparison tool. You can find several of these tools by doing a quick online search, but some popular ones include Price.com, Google Shopping, and Shopzilla.

Using a price comparison tool, you can compare prices and product features from different retailers. This will help you choose the best items at the most affordable price.

5. Sign up for emails and text messages

Signing up for exclusive emails and text messages is a simple way to learn about special offers and sales.

As you create your holiday shopping list, identify the retailers you want to purchase from. Then, visit their websites to sign up for exclusive emails and text messages.

Keeping an eye out for these special offers can help you save even more money on gifts and other holiday needs.

Start preparing for the holidays

The holiday season doesn’t have to be a time of financial stress. With these simple tips and tools, you can prepare your budget and find ways to save.

Remember, the key to smart holiday spending is planning ahead and being mindful of your financial goals. With some preparation and the right strategies, you can embrace the season’s magic without breaking the bank.

We’re also here to help! Contact us to learn more about our account and loan options, and we’ll be happy to answer any questions you have.