Many of us have a lot to celebrate this holiday season as we share time in person with our friends and families. While it’s natural to want to splurge after a year of holding back, most of us want to reduce stress and avoid credit card debt.
Let’s ask some of our past Project Money participants for their tips on keeping your spending under control this season. They have great wisdom on this topic because participants learn how to build sustainable financial habits that reduce stress around money.
Make A Quick Plan
Many participants limit spending by only using budgeted funds from designated savings accounts, like “holiday spending” for example. While it may be too late to open a savings account for holiday spending this year, it’s not too early to start one for next year. Past and present Project Money participants have other advice that can help you create a plan for this holiday season.
Sue and Jeff, Project Money winners of Season 11, are fans of a free webinar called “Mindful Holiday Spending,” which Summit offers this year on Dec. 8. It gives useful information that you can use immediately to appropriately distribute yourgenerosity to others this season. They also recommended Summit’s “Holiday Budget Worksheet” as a first step to estimate holiday costs that can sneak up on you – food and entertainment, decorations and donations. There are webinars, worksheets and other ways to make your plans available at SummitCreditUnion.com/MoneySmarts.
Create A New Gift-Giving Tradition
Sue and Jeff also overhauled their gift-giving tradition to save for needed purchases in coming years. They asked family members to list four types of presents in a fun exercise: something you want, need, wear, and read. The couple also suggested considering lower cost experience gifts, such as homemade goodies and state park passes.
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They said these new habits made everyone on their gift-giving list really think about the meaning of the holiday. Their family chose to keep gifts to a minimum so they could focus on what they cherished: spending time together.
Enjoy Finding Alternative Gifts
Katie, a Season 13 Project Money participant and single mother of four, said in her blog that the holidays are “hands down the most stressful time of the year for me.” This holiday she and her family have chosen to celebrate with many inexpensive traditions, such as new jammies, cookie baking and watching holiday movies together. Rather than buying presents that the children may only enjoy for a short time after opening them, Katie gave each child the opportunity to choose a charity for a donation.
In addition to helping Katie and her family save money, she said she hopes the new gift-giving will bring “an added level of holiday spirit in our home this season.”
In this busy season, finding time to celebrate each other can be the greater gift and one that helps your family avoid difficult financial surprises in the new year.
And as you consider New Year’s resolutions, keep in mind you can make next year’s holiday spending even easier by starting a separate savings account today! Summit Credit Union’s financial coaches work with members on financial wellness all year and are ready to help anytime.
