If you are like most people, you can expect to shell out big bucks in the next few months. On average, Americans spend about $900 each on holiday expenses ranging from gifts to food, decorations and more. While this spending is often done with joy and as an investment in creating precious memories with loved ones, it can come at a huge cost, creating unwanted debt and other financial hardship.
Fortunately, creating a budget to guide you through the holidays (and beyond!) can help you avoid taking on unwanted high-interest debt and keep spending in check. To get started, put some work into determining how much you will need to set aside for your holiday budget.
Setting Your Holiday Budget
Review previous spending.
The holiday season is a time steeped in tradition, which means that from year to year, people typically spend about the same amount of money unless there is a major life change. For this reason, a good way to get started is by reviewing your previous years’ holiday spending and income. You may want to compare those numbers to your current income to see if you need to adjust your upcoming holiday spending accordingly.
List out your typical holiday expenses.
Since the holidays bring many types of expenses ranging from gifts and décor to travel and even charitable donations, it is important to list out the overall types of expenses you typically have for the season. With each spending category, assign a dollar figure to guide your estimated spending.
Create your holiday budget.
Now that you have a solid number for what you think you’ll need for your holiday season, it’s time to create your spending and saving plan. This budget will help you ensure that your income can cover your everyday needs and wants plus your holiday savings goals. To get started, select a budgeting method that works for you:
- 50/30/20 Rule – With this budgeting guideline, you direct your income into three categories: spending for needs, spending for wants and saving. A 50/30/20 budget suggests you spend 50 percent of your income on needs, spend 30 percent on wants and then save the final 20 percent. You can adjust these percentages to help you shift even more of your spending toward savings – for example, as 50/25/25.
- Zero-Based Budget – For this budgeting style, begin by making a list of all your income, expenses and savings goals – including what you need to save for holiday spending. With this information, you can see how your income balances against your spending and savings goals. If you need to make any adjustments, zero in on spending for wants and direct those dollars toward your savings.
No matter which budgeting approach you choose, your budget should help you identify a specific target number for saving every month. You can then choose to have this dollar amount automatically transferred to a designated holiday club savings account1 to help you build your holiday fund.
Maximizing Your Money
When you make smart financial decisions, you can save even more, so as you approach the holiday season, take every opportunity to earn more on your money and spend less:
- Reduce unnecessary spending – This can include eliminating monthly subscriptions you don’t use, comparison shopping for services and utilities, taking advantage of coupons and making other changes to help you spend less and save more.
- Take advantage of sales – Goods and services are on sale all season long, so be sure to watch for the items on your list to snag gifts at a discount both online and in stores.
- Earn more on your money – Go beyond earning dividends on your holiday club savings account and earn more on your checking balances or activities. For example, with a Kasasa Cash® checking account2, you can earn up to 5.00% APY on balances up to $25,0001. When you choose the Kasasa Cash Back® checking account3, you can earn 3% cash back up to $9 a month on debit card purchases.
Start Now
Your real key to success is starting right away on creating your holiday budget and putting it into action. By saving early, you can avoid taking on unnecessary high-interest debt for the holidays and can set yourself up for a merrier holiday season.
For help in taking advantage of financial solutions you need to build your best holiday budget, give us a call at (800) 849-8431.
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1Credit Union membership eligibility requirements apply.
2Qualification Information:
To earn your rewards, the following enrollments must be in place and all transactions and activities must post and settle to your Kasasa Cash Checking account during each Monthly Qualification Cycle:
• At least one direct deposit or ACH credit transactions
• At least 12 debit card purchases
• Be enrolled in and agree to receive eStatements
Account transactions and activities may take one or more days to post and settle to the account and all must do so during the Monthly Qualification Cycle in order to qualify for the account’s rewards. The following activities do not count toward earning account rewards: ATM-processed transactions, transfers between accounts, debit card purchases processed by merchants and received by our credit union as ATM transactions, non-retail payment transactions and purchases made with debit cards not issued by our credit union. Transactions bundled together by merchants and received by our institution as a single transaction count as a single transaction for the purpose of earning account rewards.
“Monthly Qualification Cycle” means a period beginning one (1) day prior to the first banking day of the current statement cycle through one (1) day prior to the last banking day of the current statement cycle. See our website www.apcu.com or contact Member Services 800-849-8431 or one of our branch service representatives for specific Monthly Qualification Cycle dates. “Banking Day” means any day on which an office of the credit union is open to the public for the purpose of carrying out substantially all of its banking functions or for processing. “Business Day” means a calendar day other than a Saturday or a Sunday, January 1, the third Monday in January, the third Monday in February, the last Monday in May, July 4, the first Monday in September, the second Monday in October, November 11, the fourth Thursday in November, or December 25. If January 1, July 4, November 11, or December 25 falls on a Sunday, the next Monday is not a Business Day. “Statement Cycle” means the period of time for which our credit union provides a summary of the financial activities and transactions that post and settle to the accountholder’s account. See our website www.apcu.com or contact Member Services 800-849-8431 or one of our branch service representatives for specific Statement Cycle dates.
Reward Information:
When your Kasasa Cash Checking account qualifications are met during a Monthly Qualification Cycle, daily balances up to and including $25,000 in your Kasasa Cash Checking account earn a dividend rate of 4.8889% resulting in an APY of 5.00%; and daily balances over $25,000 earn a dividend rate of 0.2497% on the portion of the daily balance over $25,000, resulting in a range from 5.00% to 0.25% APY depending on the account’s daily balance. You will receive reimbursements up to an aggregate total of $10.00 for nationwide ATM withdrawal fees incurred within your Kasasa Cash Checking account during that Monthly Qualification Cycle. We reimburse ATM withdrawal fees based on estimates when the withdrawal information we receive does not identify the ATM withdrawal fee. If you have not received an appropriate reimbursement, we will adjust the reimbursement amount if we receive the transaction receipt within sixty (60) calendar days of the withdrawal transaction. NOTE: ATM fee reimbursements only apply to Kasasa Cash Checking account.
When your Kasasa Cash Checking qualifications are not met, the dividend rate earned on the account’s entire daily balance will be 0.05% resulting in an annual percentage yield of 0.05% and ATM withdrawal fees are not refunded. Interest will be credited to your Kasasa Cash Checking account on the last day of the current statement cycle. Nationwide ATM withdrawal fee reimbursements will be credited to your account on the last day of the current statement cycle. APY = Annual Percentage Yield. APYs accurate as of August 1, 2024. APY calculations are based on an assumed balance of $25,000 + $100,000 in your Kasasa Cash Checking account and an assumed statement cycle of thirty-one (31) days. Rates, rewards, and bonuses, if any, are variable and may change after account is opened; rates may change without notice to you. No minimum balance is required to earn or receive the account’s rewards. Rewards less than a penny cannot be distributed. Fees may reduce earnings.
Additional Information:
Membership restrictions may apply. Account approval, conditions, qualifications, limits, timeframes, enrollments, log-ons and other requirements apply. $5.00 minimum deposit is required to open the account. Enrollment in electronic services (e.g. online banking, e-statements) and log-ons may be required to meet some of the account’s qualifications. Only one Kasasa Checking account is allowed per social security number. There are no recurring monthly maintenance charges or fees to open or close this account. This account is not to be used for commercial purposes. If the account is closed, you will forfeit any rewards that have not been credited to your account. Advertised information and rewards are based on all account qualifications being met during each cycle period. Contact one of our credit union service representatives for additional information, account details, restrictions, reward calculations, processing limitations, cycle dates and enrollment instructions.
Trademarks:
Kasasa and Kasasa Cash are trademarks of Kasasa, Ltd., registered in the U.S.A.
3Qualification Information:
To earn your rewards, the following enrollments must be in place and all transactions and activities must post and settle to your Kasasa Cash Back Checking account during each Monthly Qualification Cycle:
• At least one direct deposit or ACH credit transactions
• At least 12 debit card purchases
• Be enrolled in and agree to receive eStatements
Account transactions and activities may take one or more days to post and settle to the account and all must do so during the Monthly Qualification Cycle in order to qualify for the account’s rewards. The following activities do not count toward earning account rewards: ATM-processed transactions, transfers between accounts, debit purchases processed by merchants and received by our credit union as ATM transactions, non-retail payment transactions, and purchases made with debit cards not issued by our credit union. Transactions bundled together by merchants and received by our institution as a single transaction count as a single transaction for the purpose of earning account rewards.
“Monthly Qualification Cycle” means a period beginning one (1) day prior to the first banking day of the current statement cycle through one (1) day prior to the last banking day of the current statement cycle. See our website www.apcu.com or contact Member Services 800-849-8431 for specific Monthly Qualification Cycle dates. “Banking Day” means any day on which an office of the credit union is open to the public for the purpose of carrying out substantially all of its banking functions or for processing. “Business Day” means a calendar day other than a Saturday or a Sunday, January 1, the third Monday in January, the third Monday in February, the last Monday in May, July 4, the first Monday in September, the second Monday in October, November 11, the fourth Thursday in November, or December 25. If January 1, July 4, November 11, or December 25 falls on a Sunday, the next Monday is not a Business Day. “Statement Cycle” means the period of time for which our credit union provides a summary of the financial activities and transactions that post and settle to the accountholder’s account. See our website www.apcu.com or contact Member Services 800-849-8431 for specific Statement Cycle dates.
Reward Information:
When Kasasa Cash Back Checking qualifications are met during a Monthly Qualification Cycle, you will receive 3% cash back on up to a total of $300 debit card purchases that post and settle to the account during that cycle period. A maximum of $9.00 cash back payments may be earned per Monthly Qualification Cycle. You will receive reimbursements up to an aggregate total of $10.00 for nationwide ATM withdrawal fees incurred within your Kasasa Cash Back Checking account during that Monthly Qualification Cycle. We reimburse ATM withdrawal fees based on estimates when the withdrawal information we receive does not identify the ATM withdrawal fee. If you have not received an appropriate reimbursement, we will adjust the reimbursement amount if we receive the transaction receipt within sixty (60) calendar days of the withdrawal transaction. NOTE: ATM fee reimbursements only apply to Kasasa Cash Back Checking via ATM.
When your Kasasa Cash Back Checking account qualifications are not met, no cash back payments are made, and ATM withdrawal fees are not refunded. Cash back payments and nationwide ATM withdrawal fee reimbursements will be credited to your Kasasa Cash Back Checking account on the last day of the current statement cycle. Rates, rewards, and bonuses, if any, are variable and may change after account is opened; rates may change without notice to you. No minimum balance is required to earn or receive the account’s rewards. Rewards less than a penny cannot be distributed.
Additional Information:
Membership restrictions apply. Account approval, conditions, qualifications, limits, timeframes, enrollments, log-ons and other requirements apply. $5.00 minimum deposit is required to open the Kasasa Cash Back Checking account. Enrollment in electronic services (e.g. online banking, e-statements) and log-ons may be required to meet some of the account’s qualifications. Only one Kasasa Checking account is allowed per social security number. There are no recurring monthly maintenance charges or fees to open or close this account. This account is not to be used for commercial purposes. If the account is closed, you will forfeit any rewards that have not been credited to your account. Advertised information and rewards are based on all account qualifications being met during each cycle period. Contact one of our credit union service representatives for additional information, account details, restrictions, reward calculations, processing limitations, cycle dates and enrollment instructions.
Trademarks:
Kasasa and Kasasa Cash Back are trademarks of Kasasa, Ltd., registered in the U.S.A.