Saving Money for the Holidays

Planning ahead for the holiday season can help you avoid last-minute shopping that can derail a carefully crafted budget and give you more time to enjoy the festivities. Below are a few ways to save and be prepared for all that the season brings.

Assess your expenses

While there is a price tag associated with exchanging gifts, holiday season spending can include much more. Decorations, parties you may host and holiday travel are a few additional expenses you may need to include in your budget.

Decorating your home can be one of those expenses that quickly adds up if you aren’t prepared. Take stock of decorations you already own and determine what you can reuse before buying anything new. For some seasonal items, like a live Christmas tree, a less expensive alternative may be available that not only lasts longer, but also saves you money for years to come.

Holiday parties are a great way to spread cheer; however, they can also be a big hit to your wallet. Consider hosting with a few friends or family members to help keep your cost down. You can get a head start on next year’s party by purchasing seasonal items, like plates, napkins and decorations, at end-of-season sales.

Many people visit friends and family during the holiday season. To help keep your travel budget in check, make sure your vehicle has been serviced before you start your journey. If you plan to fly or take a train, try to book your trip early to take advantage of lower ticket prices.

Prepare your gift list

It is easy to overspend on gifts if you do not have a plan in place. Make a list of your intended recipients and how much you want to spend on each gift. Having a list can help you keep up with changes, like adding someone you may have forgotten and adjusting your budget if necessary.

Many families have an annual gift exchange. As families expand, it can become challenging to pay for gifts for everyone. Consider ways to continue sharing and reduce spending, such as drawing names or only giving gifts to children in the family.

Giving gifts during the holiday season can vary widely among workplaces. If you are unsure of your company’s standard protocol, ask what typically takes place. In some businesses, peers and teammates may participate in a gift exchange. In others, presents may never change hands.

If you exchange presents with a group of friends, be sure to include them in your budget. It might be helpful to establish a dollar limit that each person is expected to stay within, which not only helps you budget, but also, sets expectations among the group.

Save early, and save enough

One of the best ways to save for the holidays is to put aside a little bit of money all year long. Keeping your holiday stash separate from your general checking and savings accounts will make it easier to monitor your progress throughout the year and keep you from accidentally dipping into your reserves.

The Christmas Club Savings account from Trustmark can be a great solution. The account is designed to automatically transfer funds from one of your other Trustmark deposit accounts to easily build your savings and earn interest, and there’s no monthly maintenance fee. Funds are dispersed annually in November, and your account remains open so that you can get a jump start on savings for the following year. With Trustmark’s help, you can ensure that the holidays won’t put a dent in your budget.