Christmas in July: Set Your Savings Strategy Now
Jump To: Budgeting | Opening a Checking Account | Opening a Special Purpose Savings Account | Setting an Automatic Transfer | Debt Consolidation | Sticking to Your Budget.
You may still be in summer vacation mode, but can you believe we’re more than halfway to the holidays? While you apply your next layer of sunblock, it may be a good time to start thinking about your holiday budget. According to the National Retail Federation, consumers budgeted an average of $890 for holiday spending in 2025.***
Figuring out your holiday spending strategy shouldn’t feel like untangling last year’s Christmas lights. Start simple! Decide who you’re buying for and set a limit per person. If your budget is $890, you could save roughly $52 per week from the first week in August through the third week in November to be ready for Black Friday and Cyber Monday.
For a quick budgeting guide, download the Community First budget template. This template includes a designated holiday budget that can help you determine how much you can realistically spend against your monthly budget.
Once you have set your budget, decide where you want to keep your money. We suggest separating it from your everyday spending account.
Here are some simple strategies you can follow to set yourself up for a bright – and money savvy - holiday season.
Open a New Checking Account
One of the simplest ways to create a savings plan – and stick to it – is to open a new checking account. With just $5, you can open a new checking account online or in branch at Community First. Once you have your new account, sign up for Online Banking, which allows you to quickly view your balance, set up automatic transfers, and much more.
Update your direct deposit to transfer a certain amount per check to go to your new holiday spending account. This simple automation removes the guess work and temptation to spend.
When it comes time to shop, make every cent count, when you sign up for Save My Change.
Open a Special Purpose Savings Account
Open a new Special Purpose Savings Account. Here are the quick steps you can follow to get started:
- Sign into Online Banking
- Go to Open & Apply in the left navigation menu.
- Click on Open a New Account
- Select Membership Savings
- Scroll down to Special Purpose Savings Account, and click Add Special Purpose Savings Account
- Click Continue. From here, you will provide your identification and proceed with the application.
You only need $25 to start your Special Purpose Savings Account.*
From there, determine how much you will need to deposit per week to meet your holiday spending goal.
Next, just set up your automatic transfer! Here are the steps:
- Sign into your Online Banking account
- Navigate to Transfer Services in the left navigation menu
- Select Transfer Money
- Select your From Account and To Account
- Set the amount
- Select a frequency that works for you. This includes weekly, monthly, first of the month, and more. You can also set an end date for your recurring transfer. (Or - for a pro tip – leave this automation in place all year so you always have a holiday spending budget to pull from.)
Free Up Debt Payments Now
When saving for the holidays, reducing or removing your debt payments feels like a problem to solve in January. However, debt reduction may be the key to freeing up funds for the holidays.
If you’re paying on high-interest balances that eat into your monthly budget, you could apply for a balance transfer to significantly lower your monthly payment. Learn more about Community First credit cards and how you could pay 0% APR on balances transferred in the first 12 months.**
Sticking to your Budget
A set-it-and-forget-it mindset is what you need to make sure you stick to your savings plan – but how can you avoid overspending when the holidays arrive? Here are a few quick tips to help you avoid a financial hangover in January:
- If you’re hitting stores on Black Friday, only carry the card for your holiday account. Don’t be too lured in by deals, or dip into other accounts.
- Don’t buy more online just to reach the free shipping threshold.
- Shop early. Save wanted items to a wish list and monitor price changes.
- Avoid guilt. If you’re feeling bad that someone didn’t make your shopping list, no worries! There are free and very cost-friendly gifts*** you can explore, or you could use rewards points you’ve accrued to purchase their gifts.
Conclusion
Community First is here to help you meet your financial goals. Whether you need budgeting tips, or you have questions about our checking and savings accounts, our dedicated team is here to help. Contact us or stop by a branch!
*Special Purpose Savings - New members must open a share account with a minimum $5 initial deposit (share account is required for membership). Minimum deposit balance of $100 to earn interest. APY = Annual Percentage Yield. Minimum balance of $25 required.
** APR= Annual Percentage Rate. 0% Introductory APR for 12 billing cycles, valid for balance transfers made within the first 90 days of account opening. After the 12-month promotional period ends, it will revert to your standard variable rate. A 3% transaction fee will be applied for each balance transfer. All credit card applications are subject to approval. Balance transfers of existing Credit Union credit cards are not eligible for this promotion. Certain restrictions and limitations may apply.
***All information contained in this blog is for informational purposes only. The credit union makes no representations as to the accuracy, completeness, suitability, or validity, of any information. The credit union is not responsible for any errors, omissions, or any losses, injuries, or damages arising from its display or use. All information is provided AS IS and with no warranties and confers no rights.
The credit union is not responsible for material that is found through non-credit union links posted on this blog site. Ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
