Financial Wellness:

Don't Let the Holidays Sneak Up on Your Finances.

Winter isn’t too far away—which means the holidays are coming!

It’s that special time of year where, in the spirit of giving, you may find yourself spending more than you anticipated and paying less attention to your bank accounts as a result. Then, when the holidays end, you set a New Year’s Resolution to begin budgeting more carefully—sound familiar?

The good news is that with UMassFive’s Holiday Club, you can break the holiday shopping cycle by slowly building your holiday savings over the course of an entire year. We can do all the work—setting up automatic deposits or transfers in an amount that you like, and we’ll help you avoid temptation by only making it available in your spending account when it’s time to start shopping!Then, with a set amount of money guaranteed in time for the holidays, you’ll be better positioned to make a holiday shopping plan that keeps everyone—including yourself—happy.

As a starting point, figure out how much you’d like to save for the holidays and how much you’d be willing to part with from every paycheck: For a bi-weekly paycheck, saving $20 each period will reward you with $520 for the holidays. If this feels low, saving $30 every two weeks will net you over $780. Wishing you could save more, but worried you can’t justify the larger deduction per pay period? Consider the alternative: overspending and using credit cards to cover the deficit could lead to even larger bills when you factor in interest payments—leaving you even farther behind. If you want to reach your savings goal, it is important to plan ahead and know what your holiday shopping will require. Even if you don’t have a Holiday Club Savings account yet, you can apply the following principles to your holiday strategy this year:

• Though it may not be obvious, a gift giver typically cares much more about the cost of a gift than a gift receiver. Try discussing spending limits with your friends and family early on, so the thoughtfulness behind a gift can be what brings the most value, and you don’t feel like you have to spend a certain amount to meet an expectation.

• Host a Yankee Swap instead of exchanging gifts with your friends or family. With set spending limits, this can be both affordable and entertaining.

• Look for gifts on Etsy or Kickstarter. These gifts are likely to be unique or novel, making them thoughtful items that may allow you to save a little cash in the process.

Remember, the holidays are about enjoying the company of your friends and family—not stressing—and a free Holiday Club account from UMassFive can set you up to avoid that boom and bust cycle. Combined with a solid holiday shopping plan, you will be able to reduce the stress associated with the holidays and spend more time enjoying the festivities.

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