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I hope you have your Christmas savings ready. As wonderful as the Yuletide season is, it has its fair share of problems. You might think it’s a time for loved ones, but there’s more to it than that. The holidays are a time for spending, and the 2021 holiday season looks to be the most expensive one yet.
If you don’t have Christmas savings set aside, you’ll have a tough time buying gifts and hosting parties. The last thing you want to do is feel guilty about spending during the holiday season. But now is not the time to dip into your emergency fund just to buy presents for everyone.
The 25th might be just around the corner, but there’s still time to save some money this season. Here are 15 tips you have to follow if you want to have some Christmas savings:
1. Open a Christmas Savings Account
There’s a chance that you’ve never heard of a Christmas Savings Club Account. They’re a special kind of account where you can deposit money throughout the year. Once the holidays roll around, you can withdraw the accumulated savings and use that money for seasonal expenses. They’re like a retirement account, but for the holidays!
While many banks don’t have Christmas Savings Club Accounts anymore, credit unions and community banks still offer them. Here are some that you can open.
2. Contribute to your Christmas Savings Account Regularly
Once you have a Christmas Savings Club Account, you have to contribute to it regularly. That way, you can keep growing your holiday budget. If you put in $20 every month, that means you’ll have $240 for holiday expenses!
3. Track your Savings (and Spending)
Make sure that you’re keeping tabs on how much money you’re saving and spending for the holidays. By tracking your spending habits, you’ll be able to figure out where you can spend less money. Using an app might help here.
4. Bank doesn’t have a Christmas Savings Club? Try their rewards!
Unfortunately, many banks don’t offer Christmas Savings Club Accounts anymore. But that doesn’t mean you should ignore banks entirely. Some banks offer rewards like savings on restaurants and transportation. Using these rewards can be a great way to cut down on spending.
Click the image to get your Free Stack That Rack Savings Tracker!
5. Plan ahead for gifts
It’s never too early to shop for Christmas gifts! Sometimes it can be better to buy a gift sooner than later. For example, if you want to give someone a winter jacket, it’ll probably be on discount during the summer.
Check out some of my other tips on Christmas savings here.
6…And plan ahead for the sales!
Remember to take into account sales when buying holiday gifts. Sales like those on Black Friday, Cyber Monday, and more can help your Christmas savings a ton.
7. Skip the fancy Christmas dinner and focus on growing your savings
You don’t always need the fanciest dinner to celebrate Christmas. You can have a delicious meal by cooking one up yourself or with your loved ones. Alternatively, you could have a potluck to invite your loved ones, and everyone brings some food.
Here are some other ways to save money on food.
8. Got a bonus? Put it in your Christmas savings
If your boss is nice enough to give you a Christmas bonus, then don’t just blow it immediately. Allocate at least a portion of it towards your Christmas savings. You’ll thank yourself later.
9. Don’t have Christmas savings? Don’t go into debt!
Not everyone has Christmas savings set aside for gifts and other holiday expenses, and that’s okay. On the other hand, what’s not okay is falling for the trap of “buy now, pay later.” Don’t put yourself in debt just because “It’s Christmas!”
10. You won’t deplete your savings quickly if you save on gifts
Try to find ways to cut costs on gifts wherever you can. Sales are the most obvious way to save on money, but there are other ways too. Coupon apps like Groupon or Ibotta can save you some cash while gift shopping.
Are you thinking of giving someone a new jacket, top, or pair of shoes? Check out my article on saving money while clothes shopping.
11. Christmas wrapping will deplete your savings
Is it a good idea to spend $12+ on something that will just end up in the garbage? Of course not, so why bother with wrapping paper? From my experience, people will appreciate gifts all the same without wasteful packaging.
12. It’s the thought that counts
Don’t fall for the idea that you need to give everyone the most expensive gifts. Your loved ones will appreciate affordable, homemade, and even intangible gifts all the same.
Are you planning on giving the gift of financial literacy for Christmas? Check out my list of the best investing books. They can be great gifts for someone who’s looking to get into the game.
13. Cut down on gifts
You don’t have to give a Christmas gift to everyone and their mothers. It may feel nice to be generous, but it won’t feel that way when you’re looking at the receipt. Trim down your gifts list to just the people who are most important to you. Just be honest with the people you’re cutting out of the gift budget to avoid unnecessary drama.
14. Excuse yourself from Secret Santa if you’re tight on your savings
Obligations like office Secret Santa can be a pain in the wallet. If you’re okay with not getting a Secret Santa gift this year, you can ask to be excused from it.
15. Don’t spend more than your savings!
The last and most important tip on this list is never going over your Christmas savings budget. You should set a hard cap on how much money you’re willing to shell out for the holidays. If you find yourself reaching for your emergency fund for holiday gifts, then you’ve got to reassess your spending habits.
And those are my 15 tips to increase your Christmas savings. If you liked learning about them, then I invite you to join my financial fam. As a member, you’ll receive weekly texts from yours truly, including personal financial advice and insider information. It’s free to sign up, so don’t delay and reserve your spot today!
