26 Week Holiday Savings Plan
Nora Rhoades, Family & Yourth Development Agent
Christmas
is coming! The week of June 7th marks 26 weeks before December 2015.
Can you believe it? That may seem like a ways off, but the season will be here
before we know it. It’s time to start saving for America’s biggest spending
holiday of the year.
Financial
planners recommend spending no more than 1.5% of your income on Christmas,
Hanukkah, Kwanzaa, and other holidays that make December ‘the most wonderful
time of the year’. Multiply your family’s annual take-home income by 1.5%. Will
this amount of money be disposable and at your fingertips as the holiday
shopping season approaches?
Take
a moment to imagine what you expect the holiday season to consist of this year.
Do you have a special someone wishing for an extravagant gift? Are you planning
a vacation? How many parties will you be hosting? Does your holiday budget
align with your monthly cash flow?
Lucky
for all of us, we still have 26 weeks to deter the financial stressors that
often accompany the holidays. Consider saving some money each week and
contributing it toward December’s holiday budget. Planning ahead with a “26
Week Holiday Savings Plan” can help you stay out of the red this holiday
season.
If
you put 26 dollars away during the week of June 7th and increase
your savings amount by one dollar each week going forward, you’ll have just
over 1,000 dollars saved for holiday expenses. The final week of the plan,
November 29th, involves saving 51 dollars. A weekly savings plan is
more worthwhile than dipping into your retirement savings or maxing out credit
cards to make ends meet.
Sometimes
holiday traditions don’t align with our financial constraints. Many of us can
easily recognize the gift giving and celebratory traditions we can’t afford,
yet it becomes difficult to advocate for understanding when the holidays are in
full swing. Now is the perfect time of year to discuss traditions with your
family and friends. Strive to make decisions that focus on the reason for the
season without steering away from your financial goals (like having a medical
procedure, purchasing a car, building up an emergency fund, or paying college
tuition).
After
you decide how much you can afford to spend during the 2015 holiday season, it
is time to get organized. Make a budget and itemized list of anticipated
expenses. With these plans, you can take action throughout the next 26 weeks.
You are less likely to fall into society’s spending traps when you have a
guideline for your money, time to research potential purchases, and a list to
check off as you accomplish your goals.
Take
control of your holiday spending with a savings plan. Once you have your plan
in place, you can get back to enjoying summer!
