Industry experts estimate that the average adult will spend $920 on holiday gifts this year. If that causes your blood pressure to rise, consider these top reasons to start saving for the 2021 holiday season.
The holiday season is quickly approaching, and as we begin picking out presents for our friends and family, it can be both a magical and overwhelming time of year. You may already be feeling the impact on your wallet for the 2019 holiday season. According to Investopedia, industry experts anticipate that the average adult will spend $920 on holiday gifts this year, up from $885 in 2018.
Depending on how many people you buy presents for, that may seem like a reasonable or astronomical amount for Christmas gifts. In any case, in the average family of two adults, you’ll need nearly $2,000 to buy gifts for your children, friends and family, which is not a small amount.
Why Should You Save?
Here are five reasons you should start saving for Christmas 2020 now:
- Avoid Debt – The smartest reason to start saving money for holiday gifts is to avoid spending more money than you have on hand, a.k.a going into debt. First of all, it’s not fun to pay off purchases months down the road, and besides that, it costs you a lot of extra money.
- Save more money – It’s really simple math, but the more months you save, the less you have to save each month, so start saving now for next year’s Christmas gifts.
- Plan Ahead – Before you set your savings goal, think through who you’d like to buy a present for and estimate how much you’d like to spend on their gifts (consider also adding some money for any decorations you’d like to buy or even parties you’d like to host). Keep that list handy for when you start shopping, and stick to it. If you’ve worked hard to save money over the course of a year, you’ll be more likely to stick to a budget and not make impulsive decisions. Plus planning ahead can make sure you don’t forget anyone or have a little extra money to spend on someone you hadn’t planned on buying gifts for.
- Lower Stress – “I love worrying about whether I’ll be able to afford groceries or utility bills in December,” said no one ever. Plus, with money saved up month by month, you can start buying presents earlier. Feel free to cross some gifts off your list, and even try to catch good deals as they come around throughout the year. This approach can probably save you money and definitely save you loads of stress.
- Be More Generous – When you don’t have a lot of money to work with, and the decision is “afford my power bill or buy a present for grandma,” sometimes your grandma gets the short end of that stick. Gifts shouldn’t be compulsory, but they certainly can show our love and appreciation for the people we love in a simple way. Think about the people you want to show some love and plan ahead for them. You never know what a simple gift can mean to a loved one. That’s what the holiday season is all about, after all.
Carter Bank & Trust is happy to support families’ special moments through year-round Christmas Club*. You need just $10 to open. You choose an amount to save*, and each month, that amount is drafted out of an account automatically. Your savings will accrue interest at a competitive rate over the course of the year. On October 20 of each year, your Christmas Club savings will be paid out to a checking account of your choice.
If you’re interested in relieving holiday stress and enjoying the holiday season with your loved ones in 2020, open a Christmas Club account online today to start saving!
*Minimum opening deposit is $10. Maximum total deposit of $5,000 per year per customer. If account is closed or funds withdrawn before interest is credited, interest will be forfeited. Interest compounds daily and credited quarterly. Interest is not paid if the account is closed before interest is credited. No withdrawals without closing the account. Maximum club amount is $5,000. Fees reduce earnings.