Acadian Hearing Announces Details for Annual Better Hearing Holiday GiveawayNovember 2023
National Career Development MonthNovember 2023
by Katelynn Mouton
Making a holiday shopping list and checking it twice? You are not alone. According to Nerd Wallet’s annual holiday shopping survey, close to 222 million Americans are also making their lists and expect to spend at least $831 on average.
Most holiday shoppers reach for their credit card to purchase gifts, but it is worth noting, that according to the same survey, of the 52 percent of Americans who said, “charge it” for their 2022 gifts, nearly a third of them still have not paid off those balances.
With inflation expected to make shopping even tighter this season, it is not too early to start planning for a more financially sound 2024.
While their popularity may have peaked in the 1970s, Christmas Club accounts are still very much a thing and can be a great way to plan for holiday savings year-round.
“A Christmas Club account is a short-term savings account that makes automatic weekly transfers, helping you save for the holiday season,” explains Oliver Clark, senior vice president and regional retail manager for JD Bank. “As a bonus, with JD Bank’s Christmas Club accounts, if all weekly transfers are made, your weekly deposit, up to $200, will be matched.”
According to Clark, under this formula, a little bit can go a long way. “For example, a weekly deposit of only $20 would give you a holiday savings of $1,000. These funds are transferred back into your original account the week of Thanksgiving, just in time for your holiday shopping!”
Christmas Club accounts offer a great opportunity to avoid credit card debt during the holiday season.
“With budgets already stretched thin, and the rising price of everything, avoiding the interest of credit cards allows you to save money in the long run,” adds Clark.
Christmas Club accounts do not just benefit one particular age group either.
“Younger couples certainly can benefit from this type of account, however it could also be beneficial for older individuals on fixed incomes, such as grandparents,” Clark says.
If even $20 a week seems like a tight commitment to make, consider the many smaller expenses, like a cup or two of coffee, which may be hitting your account each week.
“Even an amount as low as $5 over 50 weeks would generate a savings of $250 for the account holder,” Clark explains. “Most people tend to overspend during the holiday season, so for the price of one coffee per week, why not consider a Christmas Club account and have money set aside for the holiday season?”
A Christmas Club account is a nest egg that can be built throughout the year, helping prevent a stressful holiday experience.
“Without putting money aside for Christmas, you may put yourself in the position of having to choose between treating your loved ones with gifts and paying your bills or buying groceries,” adds Clark. “The benefit of putting a small amount away every week can help alleviate the stress of figuring out how to manage this financial undertaking.”
As you work your way through your holiday shopping list, make sure to add a little stocking stuffer for yourself by way of opening a Christmas Club account with your first deposit.
“The Christmas Club is often overlooked, however it can be beneficial to anyone, no matter what amount you are able to set aside. These accounts are a great way to gain some peace of mind during the holiday season.