Key Takeaways

• • • Holiday spending overload can leave you with debt in the New Year.
    • Avoid overspending by setting a budget.
    • Find ways to stretch your budget, including getting creative with homemade gifts and decorations.

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    The holidays are a time for celebration, but with all the decorating, entertaining, and gift-giving, it’s easy to spend too much and start the New Year with credit card debt. Consider these tips to enjoy the holidays without a debt hangover.

    Make a Budget and Stick to It

    Before planning your holiday shopping list, determine how much you can afford to spend. Make a budget for gifts, food, and decorations—and avoid using credit cards. Try these suggestions to help you stay within your budget.

    • Look at your regular monthly budget for items you can skip to boost your holiday funds.
    • Save throughout the year. Lake City Bank Digital’s Goals* savings tool makes it easy to automatically set aside money for holiday shopping.
    • Use any loyalty points or rewards you may have at certain retailers to help cover holiday expenses.

    Enjoy Yourself and Save Along the Way

    You can still have a great holiday while sticking to your budget—and you might even reduce some holiday stress! Follow these tips to save money and get more out of your budget.

    • Watch for sales, deals and coupons on the items you want to buy.
    • If you’re traveling, booking early can get you the best prices.
    • Shop for gifts throughout the year to take advantage of discounts and after-season sales.
    • Talk to your family about gifts—they may welcome drawing names for gifts or only buying for the kids.
    • Make holiday meals and parties potluck. Your family and friends can show off their cooking skills, and you save money and meal prep stress.

    Get Creative

    Showing off your creative side can help you save on gifts and decorations, and you might even start a new family tradition by working on projects together. Before you break out the glue gun, make sure the materials you need won’t cost more than buying pre-made decorations from the store.

    • Before you order a new centerpiece for dinner, look around to see if you have items already on hand that you could use.
    • Save time and money by sending e-cards instead of mailing paper ones. You can still include pictures and updates about the family.
    • Instead of spending money on an expensive activity like a concert, go for a drive to look at holiday lights around town. Bring hot chocolate and cookies for a fun, low-cost night.  

    Avoid Pitfalls

    It’s easy to get caught up in the holiday rush, but try to keep your end goal in mind.

    • Be careful with buy-now-pay-later options. While they seem convenient, you might end up with more or higher payments than you can afford.
    • Keep track of your purchases as you go to make sure you stay on budget.
    • When shopping in person, stick to your list to avoid impulse purchases.
    • Fraudsters are extra active during the holidays, so pay extra attention to emails, calls or texts asking for your account information.

    The Holidays are Around the Corner

    With the holidays on the horizon, it’s time to start planning. Set your budget and make a plan for gifts and activities that won’t leave you with bills to pay later. Remember, you can automate savings* throughout the year with Lake City Bank to make the holidays easier.

     

    *Goals, as referred to herein, constitute the Goals Account described in Section E Investment Accounts of the Personal Account Terms and Conditions.