It seems that store shelves start filling with holiday cheer earlier each year. You can find Christmas decorations all year round and carols can be heard the day after Thanksgiving, why not start getting yourself ready for the holiday season earlier too? Most of us come up with a sum of money we want to set aside for gifts, parties and extra things during the month of December, but have you ever gone to spend the money and it's nowhere to be found. Now, instead of going through the holidays without debt, you are forced to either become the Scrooge and spend nothing or put everything on credit. Either way it is not the best option for you or your wallet.
In comes a great fix for the holiday savings dilemma: a Christmas Club account. This is a short-term savings account that usually pays out the full account balance to account holders once each year, right before Christmas. Depositors are paid monthly interest on their account balances and are punished for early withdrawals. Having an account like this is a great preventive measure for those who are tempted to take from their savings early. It offers a great way to practice systematic savings to help de-stress your holiday shopping.
By having an account to help you save money for the holidays and by planning ahead on gift ideas, giving yourself a budget and being resourceful in your spending you will be more likely to enjoy a more relaxed holiday season without dragging the stress of debt along too. Talk to your financial institution and see if they offer a Christmas Club account or something similar to it. Won't hurt to join the club.
--Makenzie
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