The holidays are just around the corner, and now is the perfect time to start socking away some savings to make the holidays as bright as possible. But if you’re like most people, you find it tricky to save enough money for all of the gifts and parties of the season.
That’s why WEOKIE is helping you prepare for the holidays with 5 financial tips for holiday savings. Implement these 5 strategies, and you’ll be ready to enjoy the season with financial stability.
1. Save Every Payday
Our first tip is to get in the habit of saving money every payday and set it aside safely in a savings account. While this strategy sounds so simple, many people struggle to make saving a habit.
In fact, 21% of Americans with jobs don’t put any money into savings and another 20% put less than 5% of their paycheck in savings each payday. With so little saved, the holidays can create a serious strain on household finances.
But when you use a credit union savings account, you’ll protect your cash and make a bit of extra money on top through interest. Plus, your cash is always available if an emergency comes up before the holidays. There are generally no restrictions on making withdrawals from a basic savings account.
2. Use Automatic Deposit
Here’s another great way to build a savings habit: Set up automatic deposits for your WEOKIE savings account. Each payday, you can easily move money from your primary checking account to your savings account because it happens automatically.
Save the amount you can reasonably afford. Whether it’s $10 or $300 per paycheck, it will go a long way toward creating a cushion of money that will make holiday spending easier.
3. Set Up Holiday Certificate Accounts
Have you tried using certificate accounts for holiday savings? A certificate account is an insured savings account that builds more interest than a traditional savings account. However, unlike a regular savings account, a certificate account has a maturity date before which you can’t make withdrawals without a penalty.
The term length of a certificate account varies and is usually between 6 months and 10 years. So if you start early and choose an account that matures in less than a year, you can reap the benefits all year long and then withdraw money at the right moment for holiday spending.
This is also a great way to prepare for additional holiday spending down the line. For example, if you’re planning a big gift for a child’s Christmas present when they turn 16 years old, set up a certificate account years in advance and you’ll be ready to go when the time comes.
4. Give the Gift of U.S. Savings Bonds
You can also give a gift that promotes the good habit of saving money. A savings bond is a wonderful gift that’s available year-round from your credit union.
Savings bonds accumulate a large amount of value over time. Generally, they are guaranteed to double in value by the 20-year mark, but terms vary according to the bond. Some bonds continue to accrue value for as long as 30 years.
If you make it a habit to invest in savings bonds for the children in your family, they’ll have valuable gifts to cash out when it’s time for college and adulthood. Talk to WEOKIE about the savings bond options that are best for gift-giving.
5. Track Holiday Savings With Mobile Banking
Finally, make it a habit to save for the holidays by using mobile banking to stay on top of your finances. According to financial experts, daily financial tracking is one of the best ways to keep your finances in order and ensure you understand exactly where your money is going.
WEOKIE mobile banking allows this kind of easy, at-a-glance financial management. Transfer funds to your holiday savings account, deposit checks electronically, review your balances and make sure you’re on track to have money for the holidays.
*See a WEOKIE rep for details. Federally Insured by NCUA