Financial Friday: How to jump start your Christmas savings

HUNTSVILLE, Ala. (WAFF) - It’s September, but Christmas is approaching. September is a perfect time to decide how much you want to spend on gifts this year. You can either start saving now for this Christmas or really plan ahead for 2024.

WAFF 48 talked to Redstone Federal Credit Union’s Patricia Lloyd about the importance of setting aside a separate Christmas Savings account. “Normally we usually talk about paying off those credit cards after Christmas. But if you have a savings account, you can use that money and even earn a little bit of interest on top of that. It just makes it easier on you, and then you won’t have the stress of paying off credit card debt, come January.”

She says by starting a separate holiday savings account, it can be automatically taken out of your account each month. “The idea behind this is, it’s out of sight and out of mind.”

She recommends thinking now about how much you want to spend this holiday season on gifts, divide by 3, since we’re only 3 months until Christmas, and you will need to set aside $200 a month.

If you have children, she also recommends getting them involved and teaching them the importance of saving and giving.

“It can also be fun for kids to participate. They can save part of their allowance, and buy gifts for family and friends with their own money.”

To learn more about Redstone Federal Credit Union’s Christmas Club Savings, just visit this website.

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