The key to any successful holiday budget is to start saving early. While holiday-related expenses may seem like a future problem, you can mitigate it ever becoming a problem by slowly building a dedicated cushion before the season rolls around. Our team at Legacy Bank recommends setting up a separate savings account dedicated solely to expected seasonal expenses and contributing a small percentage of your paycheck each month. Something as minimal as $20 per week can accumulate over time and prevent last-minute scrambling. You may also choose to review your previous year’s holiday spending and use it to set realistic savings goals.

Open a Legacy Bank savings account online!

When it comes to gift-giving, it’s best to be intentional about how much you want to spend on each person. Start by creating a list of everyone you plan to buy for and set a dollar limit for each to avoid overspending on last-minute purchases or feeling pressured to splurge on everyone. If you’re concerned about the added cost of large meals, gatherings, and travel, you may choose to break your budget into smaller, more manageable pieces so you can prioritize spending in certain areas and keep a close eye on where your money is specifically going.

Big-ticket items—whether it’s a large gift, travel, or hosting a party—can make the biggest dent in your holiday budget and are often the transactions that catch people off-guard. Don’t set yourself up for a surprise when you see your monthly statement; instead, factor large expenses like electronics and holiday vacations into your budget early in the year. This way, you can spread out the cost by making payments over time.

Holiday Shopping Tip: Start following the latest deals, as many retailers offer holiday discounts and sales well before December. Sometimes, making the larger purchases early can save you money later on!

Buy Now, Pay Later (BNPL) services are popular ways to spread out payments over time and can be incredibly appealing if you’re purchasing gifts or larger items. However, it’s important to fully understand the terms before opting in! These services often offer interest-free periods if you pay off your purchase in a certain amount of time, but missing payments can result in hefty interest charges or fees, making items costlier than you had initially intended. Before making any final decisions, understand any potential penalties for late payments or hidden fees, and only use BNPL for items you know you can afford to pay off within the interest-free period. This way, you can avoid financial headaches long after the holidays are over!

We’ve all done it. You see something in the store that you know your friend or family member would love, and you purchase it without ever looking at the price tag. With seasonal sales and discounts everywhere and the temptation to buy that “perfect” gift, it can be hard to resist adding a few extra items to your cart. But don’t forget that unplanned or impulse purchases can quickly derail your budget. Our team recommends making a detailed shopping list before venturing to your favorite stores or sites and setting a strict limit on what you’re purchasing to avoid spur-of-the-moment decisions. If you find yourself getting the urge to buy something on impulse, wait 24 to 48 hours to decide if you actually need it.

Holiday Shopping Tip: Unsubscribe from promotional emails or avoid visiting websites that have been known to tempt you with enticing deals. While you swear you’re “just looking,” it can be challenging to refrain from spending!