Saving for Next Year: Christmas Club

Congratulations, MomVesting reader. You've made it through yet another Christmas season. Who's for looking ahead to next year's holiday season? Now, don't click away just yet; hear me out. Yes, many of our seasonal lights are still blinking away after the sun goes down, and many of us have just finished carting out the large garbage bag stuffed full of wrapping and tissue paper. And some of us – the lucky ones – still have a few Christmas cookies or goodies hanging around the house. I know we just wrapped up Christmas (pun intended), but it's never really too early to start thinking of ways to save now for next year's gift expenditures. Wouldn't it be nice to actually have cash on hand to pay for all of those gifts? Why not consider joining or starting a Christmas club?

And That Is?

Glad you asked. Christmas Clubs are often offered through credit unions or places of employment. Typically, they allow an employee to elect to deposit a portion of a paycheck into a fund or account in advance of the holiday season. Each pay period, money goes into the fund, and when Christmas shopping season rolls around, a nice egg has been squirreled away to spend on Christmas gifts.

But I . . .

. . .don't belong to a credit union? Don't have a place of employment? No problem! For one, you can check with your bank to see if a similar program exists. You could even look into starting up a plain old savings account with the intent of saving for next Christmas.

Even if you don't belong to a credit union or a place of employment that participates in Christmas club accounts, you can still create your own version at home. You can set aside money in a shoebox or a piggy bank routinely. It can be a great option to have money to shop with at near the end of the year without having to resort to credit cards or dipping into savings.

Not Just For Christmas

The best part of this whole idea of saving is just that: saving. While Christmas is a pretty hefty expense for most of us coming up on a distant horizon, life often throws us other expenses. Say you know you want to throw your hubby a big 4-0 party this year, or that you'll have three weddings (translation: three wedding gifts) coming up; the same concept of a Christmas club can translate easily into saving money for these expected expenses. Instead of relying on plastic to take care of the party, gifts or whatever else is lining up for you this coming year, why not start putting some money aside now?

Whether it's for Christmas or another expense in your life, saving expressly for those things you know are coming can help save your budget and your wallet a bit hit later.

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