SPOKANE, Wash. — Think it’s too early to worry about holiday budgets? Think again. Financial experts say the best time to start planning for holiday expenses is right now, while you’re sending kids back-to-school.
Here’s the reality check nobody wants to hear: that last-minute holiday shopping spree you put on your credit card could haunt you for decades.
“For example, a $2,000 dollar debt on your average credit card might not sound like a lot but if you’re making minimum payments that could take you 31 years to pay that off, and cost you about $10,000 dollars,” said Barin Saxton, Business Development Specialist with Canopy Credit Union.
Thirty-one years. That’s longer than most people’s mortgages.
So, what’s the secret? Saxton says it’s actually pretty simple. Start planning now, before the holiday rush hits.
“Just make a list, make a list of everything you’re going to need,” Saxton said that can include party planning and travel expenses.
Figure out what you typically spend during the holidays – gifts, travel, party expenses, that fancy dinner out – then divide it by how many months you have left. Instead of scrambling to find $1,500 in December, you could save $300 a month starting in August.
Set up automatic transfers so the money moves to your holiday fund before you even miss it.
“The more you have to think about your savings, the less successful it will be,” Saxton explained.
Saxton also recommends keeping that holiday money separate from your emergency fund. You don’t want to accidentally dip into your car repair money for Christmas presents.
Many local banks and credit unions offer special holiday savings accounts that actually reward you for sticking to your plan. These accounts often come with bonus interest rates, but only if you don’t touch the money early.
“It has to be set up with that automatic transfer, it incentivizes that automation, but it also incentivizes not pulling out that money early and if you don’t, you get to keep that little bonus,” Saxton said.
A few months of small, automatic savings now means you can actually enjoy the holidays instead of dreading the bills that follow.
COPYRIGHT 2025 BY KXLY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.
