According to the American Research Group, shoppers spent an average of $700 for gifts last holiday season. So before the holiday music hits the airwaves, how can you start financially preparing to be ahead of the game, come December.
Make your budget and gift list now.
Is your holiday budget going to be similar to last years? Look back at last December's expenses to get a more detailed feel for what your expenses may be. Draft up that gift list now so that you have a fair idea of how many gifts you will need to purchase and approximately how much they'll cost. Having this extra time before the holiday's hit allows you to be more thoughtful about the gifts you are buying.
- Set up a holiday savings account.
Have a portion of your pay check direct deposited into a separate savings account that is solely for the purpose of saving for the holidays. Don't wait! It's never too late to start. Look for ways to temporarily cut back discretionary spending for the next 12 -14 weeks. For example, if you can save $30 a week by packing a lunch instead of eating out, you could have over $400 towards your holiday budget! Check out a Christmas club account for future holiday savings. Weekly or monthly deposits accumulate through the year, may earn a little interest and the bank or credit union cuts you a check before the holidays.
- Start shopping now.
Spreading out your spending is a good way to avoid using credit cards. Early shopping can help you make the most of seasonal pricing trends such as late summer buys. Avoiding last minute spending means you are less likely to overspend and can help you avoid a January credit card hangover.
Source: American Research Group
The information provided is general in nature and may not apply to your personal investment situation. Individuals should consult with their chosen financial professional before making any decisions. Investment services are offered through Wells Fargo Advisors, LLC member SIPC.