Holiday Spending Leave You Broke?

Wow, this year I managed to make a lot of my gifts, but still spent quite a bit. Not so much that I would need second or third mortgages (if I owned my home that is) to pay for it all or anything like that.

Unfortunately many people feel obligated to buy gifts for everyone at Christmas time and put themselves in debt with credit cards


I can certainly understand the feeling of needing to give, but that’s not the giving that should be going on during the holidays. I don’t think anyone would ever want us to put ourselves in debt or not pay a home insurance bill or anything just to give them a physical gift that costs a fortune.

I honestly think most would rather receive something personal that comes from your heart and maybe took a bit of time and planning to put together anyway. I know I would.

For those who aren’t the creative type, there are other ways that you can accomplish buying gifts for everyone on your list without putting a strain on or totally depleting your finances. There are special savings accounts at many banks and credit unions, known as Christmas Club Accounts that you can put money into all year long and aren’t allowed access to that money without a penalty until usually October or November, making it perfect for holiday purchases.

You can pretty much have control of how much you want to spend the following year, by figuring out what you can afford to stock away each month. The interest rates vary on these types of accounts, but receiving interest is always better than paying it, especially when the interest rate you have to pay back on secured loans is always higher.

A lot of employers are doing this now too. Employees can have a set amount taken out of each paycheck and set aside in a savings account and then they receive a check usually in the fall for the amount they put in along with a bit of interest.

Anyone ever used one of these Christmas savings accounts? Have any tips to share on how to keep from breaking the bank next Christmas?