While the holidays should be a time of excitement, joy, and magic, the toll they take on your bank account sometimes feels anything but charming. But it doesn’t have to be that way. It’s possible to celebrate the holidays plus treat your loved ones (and yourself) to unique gifts and experiences without draining your savings. 

Here are three reasons to start saving now, so you and your bank account are ready to celebrate this year’s season without a post-holiday debt hangover.

This Year’s Holiday Prices Could Hurt 

It’s probably no surprise that the holidays are expensive, but shoppers might notice just about everything costs more this year. According to the latest Bureau of Labor Statistics report, the cost of overall goods has increased 8.3% since last year. Food prices increased by 11.4% over last year, and all other items, not including sans food and energy, rose 6.3% over the past 12 months. 

Most employers need to raise pay rates faster to match the rate of inflation, considering the cost of wages only increased from around 5% from 2021-2022. Currently, you could be allocating a lot of your savings to offset the increase in prices of your day-to-day necessities, leaving you with little to spend on the extras typically associated with the holidays. 

Reasons to Start Holiday Savings Now 

If you’re still on the fence about starting an automated savings plan ahead of the holidays, here are reasons to start saving well before the season arrives.

Eliminate the stress associated with holiday shopping

From the mad rush at work before end-of-year deadlines to spending time with extended family, the holiday season may also include the stress of hosting family. The last thing you want is money to add to that stress.

Saving earlier in the year will give you a sense of control amidst holiday stress and prepare you for unexpected costs. 

Develop a plan to put away as much money as possible from the paychecks you earn now throughout the holiday season. You can put this money into a savings account that you won’t touch in the short term but can access later on as you shop for holiday needs. Apply for the Payactiv Visa® Card* to set money aside automatically for the holidays and other goals in the free Payactiv app¹.

You don’t have to save a lot, but try to stay consistent. Find an amount that works for you, and stick to it each week. 

Strategically shop for gifts 

The more money you save now, the more you will have on hand to start shopping for gifts, decor, and other holiday-related items. This cash reserve enables you to shop strategically for early deals too. 

• Find the best deals: You may stumble across a great deal on kids’ toys at your local toy store at the beginning of November, or you might see your mother’s favorite jewelry store run a sale one weekend in late October. Having the money already in reserve lets you capitalize on those deals to save more in the long run. 

• Find the best gifts: With cash in your account, you can tailor or customize purchases to give the best quality version of a specific gift. Saving early enables you to get your loved ones what they want, how they want it. 

• Avoid the holiday rush: Anyone who has ever shopped during Black Friday or the day before a major holiday knows the experience is anything but pleasant. Frustrated shoppers, screaming children, and picked-over items make shopping during the holiday rush unpleasant. Early savings and shopping eliminate your need to engage in the holiday retail madness. 

Enjoy the holidays while achieving your savings goals. 

Who says you can’t have your fruitcake and eat it too? Holiday costs don’t have to derail the savings progress you’ve made the entire year. Here’s how: 

• Continue to save as you did throughout the year: Don’t let the impending holidays detract from the savings plan you made for yourself throughout the year. Instead, continue to put aside money in a savings account, retirement fund, or anywhere else you were allocating your savings throughout the year. The money you set aside for the holidays is in addition to your regular savings, not in its place. 

• Don’t make purchases on credit or layaway: Don’t purchase items or book holiday travel on credit unless you are sure you will be able to pay off that credit card bill at the end of the month. Also, don’t purchase gifts on layaway. You will inevitably have to pay interest on those items, which is an unnecessary extra expense. 

The holidays are special, but spending above your means will cause more stress down the road. 

Start Saving Today in 4 Easy Steps

Payactiv’s Goal-Based Savings** makes setting money aside for the holidays easy and efficient. 

1. Apply for the Payactiv Visa Card. It’s not a credit card, it’s a prepaid card with exclusive budgeting features. 
2. Activate your card and download the free Payactiv app¹. 
3. Optional, but recommended: Set up Direct Depositnd your paycheck to your new Payactiv Visa Cardaccount with paycheck Direct Deposit and get paid up to 2 days early². 
4. Set a goal in and start setting money aside! Manage your spending, pay bills, and save on everyday essentials like perscriptions medicines all from the app. 

Choose a goal you’d like to set  money towards, and Payactiv will automatically transfer that amount every month. Start saving for the holidays today and make the season merry and bright with Payactiv Goal-Based Saving Tools.

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