How to Financially Prepare for Holiday Shopping
While the holidays are known as the “most wonderful time of the year,” they can also be the most stressful. This is especially true when it comes to finances, with the average American spending around $800 on holiday gifts per year. Fortunately, the personal bankers at Citizens Bank are here to help you financially prepare for the holidays and alleviate some of that stress. We offer expert advice and programs like our holiday club, designed with your needs in mind.
How to Financially Prepare for the Holidays
It’s never too early to start planning for the holidays, especially financially. Below are some tips on how to save money for your holiday gifts this year and beyond.
1. Create a Budget
While most people think of budgets as being an overall summary of their income and expenses, you can budget for specific events, like holiday shopping. You can set an amount of money to spend on each person on your list and find gifts they would enjoy while staying within that budget. Other holiday expenses, like food and travel, can also be included in your holiday budget.
2. Join a Holiday Club
Some banks, like Citizens, have holiday clubs for their members. You put an amount of money, often as low as just $25, into this account. Over the year, it collects interest, growing your savings. The money is disbursed, usually in November, when you can use it to shop for holiday gifts.
3. Certificates of Deposit (CDs)
Along with holiday clubs, shorter-term investment tools, like certificates of deposit or CDs, can help you save for holiday expenses. These allow you to plan ahead as CDs offer various maturity dates, including:
- Three months for short-term savings
- 6 to 18-month longer-term options
When you’re ready to start planning for the holidays, a personal banker, like those at Citizens Bank, can help you determine the best option for your needs. Contact us today to start financially preparing for the holidays.
4. Involve the Family
You may think that involving your children in holiday planning will ruin the magic, but that’s far from true. By doing so, you will be giving them a gift that will last a lifetime: the gift of financial responsibility.
To do this, involve them in creating a holiday budget and shopping for gifts for friends and siblings. You can even give them an allowance to spend to teach them to manage their own money while shopping for holiday gifts.
For teenagers, encourage them to take a part-time job to earn extra money. Many stores are busy during the holiday shopping season and could use extra help. This way, you will also be giving them the gift of a good work ethic.
How Much Should I Save for the Holidays?
Depending on your holiday plans, the amount of money you should save may vary. If you are traveling, especially internationally, you will need to save more than if you’re just staying home and relaxing with your family. Regardless of your plans, you need to know how much you will be spending and in turn, how much you need to save.
To help you determine how much you should save for your holiday expenses, Citizens Bank has designed a purchase calculator. This calculator calculates how much you need to save to make a purchase, like a holiday gift, using the information you put into it. It can help you create a budget for your holiday gifts and travel expenses.
Prepare for the Holidays in Tennessee With Citizens Bank
It’s never too early to start preparing for the holidays! That’s why Citizens Bank is here to help you meet your savings goals this holiday season and beyond. To get started, contact us online, call (615) 327-9787, or visit us in Nashville or Memphis.
Join Citizens Bank’s Holiday Club in Tennessee
Start preparing for the holidays today with Citizens Bank’s holiday club. We can help you save for holiday expenses like travel and gifts. To learn more, contact us online, call us at (615) 327-9787, or visit one of our branches in Nashville or Memphis today.