5 Smart Holiday Spending Tips for Financial Wellness

Holiday spending can often be a source of stress, but with thoughtful planning and strategies, you can navigate it in a way that promotes financial wellness. Here are some tips to help manage your holiday spending:

1. Set a Budget

Decide on a realistic holiday spending budget that takes into account your income, existing expenses, and savings goals. Categorize your budget by gifts, food, travel, decorations, and any other holiday-related expenses. This makes it easier to outline, track and manage your spending. 

Once you have your budget, commit to it. Track your holiday spending. You can use budgeting apps, a simple spreadsheet or a notes app on your phone. Tracking your spending does not have to be complicated. Sticking to your budget is the most important aspect. Remember the key to a successful budget is follow through.

2. Plan Your Purchases Early

If you and your loved-ones engage in a holiday gift exchange, plan what you’ll buy for each person ahead of time. Research gifts and check for discounts or sales. Your preparedness will help you compare prices, take advantage of holiday sales and avoid the temptation of last-minute impulse purchases.

Planning to spend is a good way to give yourself peace of mind while shopping. Heritage offers tools such as our Christmas Club account and Spare Change program that assists you in saving money throughout the year for future spending. Specifically, our Christmas Club Account allows you to save money throughout the year by placing your money in a savings account that will earn dividends until you go to spend it during the Holiday Season. Our Spare Change program saves the change from your transactions in a savings account of choice. 

3. Use Credit Cards to Your Advantage

Using credit cards wisely for holiday spending will work to your advantage. Choose a credit card that will earn rewards, but make sure you can pay your purchases off immediately. Paying your credit card bill off on time will not only help you earn rewards for spending, but will also help you build your credit score. Avoid putting purchases on credit cards if you can’t pay the balance off in full immediately. High-interest rates can turn your holiday spending into long-term debt.

Learn more about Heritage’s Rewards Credit Card options. 

4. Use Technology to Your Advantage

Look for cashback deals, coupons or discount codes before making purchases online or in stores. Sometimes retail stores will offer their items at a lower price online. Think about checking the price of the item online, consider ordering online or ask the retail employees if the store price will match their item(s). 

Utilize technology to help you track your spending and set savings goals as well. Remember you track spending and you can even set savings goals on your Heritage Digital Banking App by following these simple steps: 

• Sign into your Heritage Digital Banking app.
• At the bottom right, click “More.” 
• Under the financial planning drop menu, click “Financial Wellness and Goals.” 
  • Under this section, you can easily see your spending under the section “Spending.” We break-down all of your spending on a Heritage debit or credit card by category and by transaction. 
  • At the top, you should see “Savings Goals” to the left of “Spending.” Click “Savings Goals.” Here you can set savings goals to help you set aside money for things you want. Let us help you stay on track and achieve your goals. 

5. Focus on Meaningful, Low-Cost Gifts

Sometimes the best gifts are not the expensive ones. Instead of expensive physical gifts, consider giving experiences like cooking a meal together, offering your time, or planning a fun outing. Handmade gifts like baked goods, personalized crafts, or photo albums can be thoughtful and budget-friendly. If you're buying for a group, consider pooling together with others to purchase a joint gift. This can reduce the pressure of buying multiple individual gifts. 

Remember that the holidays are about spending time with loved ones, not about spending money. Shift your holiday focus to connection, giving and shared experiences. By planning ahead, tracking your spending, and making mindful decisions, you can enjoy a financially responsible holiday season that doesn’t compromise your well-being or future goals.

The views and opinions expressed in this blog are those of the writers, and do not necessarily reflect the views or positions of Heritage Federal Credit Union.

Insured by NCUA. Membership restrictions apply. Subject to credit approval.