Plan Now, Stress Less Later: How to Save Early for the Holidays

The sun is shining, the days are warm, the flowers are still in full bloom—which means now is a great time to start thinking about the winter holidays. Nope, it’s not a joke! Here’s how to save early for the holidays so you can spend less and stress less later this year. 

Open a High-Yield Savings Account 

To give your savings a major boost, consider opening a high-yield savings account. A high-yield account offers higher-than-average APY, so you can earn more interest on your savings while keeping your money accessible. By the time the holidays come around, you’ll have saved more than you would have with a traditional savings account. More savings, less stress. Now that’s something to celebrate!  

Shop the Summer Sales  

Do you ever notice prices always seem to rise on the exact day you start your holiday shopping? To avoid holiday price inflation, shop earlier in the year for gifts, decoration, and any other items you foresee needing for the coming holiday season. One caveat: only buy items you are absolutely certain will be both needed and wanted come winter. The last thing you want is to overspend too early and still need to do the bulk of the shopping later on. 

Pay Off High-Interest Debt   

One of the smartest ways to prepare for winter holiday shopping is to pay off high-interest debt as soon as possible. High-interest debt, usually related to late or unpaid credit card balances, cost more and more every month that you don’t pay them off—so you’ll have less and less money for the holidays. One option is to transfer your balance to a card with a 0% APR intro offer, so you can pay off your debt without accruing additional interest during those intro months.  

Start on Low-Cost Projects  

Some of the best gifts cost nothing, though they may take a bit of time. By starting early on the winter holidays, you’ll give yourself a few months to get crafty with this year’s presents. Consider canned tomato sauce if you’ve got a garden full of vegetables; use thrift store yarn to knit scarves or blankets; or capture photos of friends and family to make personalized framed keepsakes.  

Thrift Decorations Early  

Traditional stores might not have holiday items in stock yet, but thrift stores often carry them year-round—and for a better price when you shop off season. Look for dishware, tree trimmings and wrapping paper; as well as items which might makes good gifts for friends and family. And remember: the best holiday trimmings (including candles, ribbon, fabrics and so on) aren’t always found in the “decorations” section.  

Keep a Card and Gift Box  

Shopping for a lot of items, all at once, is a recipe for overspending. One way to reduce the cost of holiday shopping (as well as the stress) is to find items throughout the year and collect them in a designated place. Having spare cards and gifts is useful for occasions year-round, but particularly beneficial around the holidays—in case you need a last-minute hostess gift, or your second cousin twice removed shows up to the party.  

Use a Rewards Credit Card  

If you don’t already have a credit card that offers cash back rewards, get one before you start on the holiday shopping. With a rewards card, you can earn cash back on all kinds of purchases—which means more money in your purse before, during and after shopping for the holidays. Check out Rewards Cards from Harvard FCU, which offer up to 3% on gas, 2% on groceries, and 1.5% on everything else.