Creating a Holiday Savings Plan
The gift-giving season can sneak up on you if you’re not paying attention, so it's never too early to begin saving for the holidays. And while not everyone plans a budget for the holiday season, sticking to a budget is the best way to eliminate surprises.
Here are a few savings tips to help you put away holiday funds this year.
- Set up a separate savings account – To keep your holiday savings separate, consider opening up a holiday savings account. Companies like Nationwide Bank offer traditional online savings accounts that allow customers to earn as they plan their holiday budgeting. Follow the tips below to find money to put into an online savings account where you’ll be less likely to spend it on regular expenses. That way your money stays safe and you'll earn interest on your savings until you're ready to start shopping.
- Skip the Starbucks - One of the easiest and most effective ways to save money is to cut back on regular expenditures. Whether that means skipping your daily caramel macchiato at Starbucks or packing your lunch for a few months, small daily savings can really add up over time. If you skip a four dollar cup of coffee five days a week, you could save approximately $480 over the course of six months! Why not put that $20 a week toward your holiday budget? If you have trouble limiting your daily expenses, consider budgeting with a Visa gift card.
- Skim a little off the top - Another way to save money for holiday shopping is to deposit a little bit from each paycheck into your holiday savings account. This way, you prioritize saving and avoid getting to the end of the month with nothing left. Try saving $100 per month, and within six months you’ll have approximately $600 toward your holiday budget.
- Seek out a second job - Side jobs are a great way to earn extra money for holiday shopping, and can include anything from picking up a few shifts at a local coffee shop to babysitting for friends and neighbors. Check out retail stores and restaurants in your area that might be looking for part time help. Make sure to put all of your side income into your holiday savings account to reach your holiday budget goal.
- Start to put aside money - If you don’t have the time to get a second job, and already have money on hand that isn’t being utilized, consider a short term savings product as a way to grow your savings before the holidays arrive. FDIC insured money market accounts and certificates of deposit (CD accounts) are simple and convenient options that can help you safely grow your money. No matter when you start saving, you can choose the term that best fits your holiday savings goals.
There's no better time than the present to start saving for the holiday season. And since opening a holiday savings account is so easy, you'll have plenty of time to save money to put toward your holiday expenses, from Visa gift cards to greeting cards. Take advantage of Nationwide Bank’s online savings calculators to help you save money ahead of time so you make it through the holiday season with your budget intact.
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