*Catherine Alford is a sponsored partner compensated by OneMain.
When is the best time to start saving for the holidays? Now! After all, having money saved to buy presents when the holidays come makes the season so much more jolly.
Our sponsored partner and financial expert Catherine Alford provides some very useful tips for year-round holidays saving.
See video transcript...
Having money saved to buy presents over the holidays makes the season so much more jolly!
So, I'm going to teach you step by step how to make a holiday savings fund.
Make a list of everyone you want to shop for, including your family members, co-workers, friends and neighbors.
Write down the amount you want to spend next to each name. So, you might want to spend $100 on your kids but only $15 on the people on your team at work.
Add up the cost of everyone on your list and then add about 20% to that number to give yourself a good buffer.
Open a high-yield savings account that's just for your holiday money. This is a specific type of savings account that earns a higher interest rate than your average savings account.
This works best if it's a completely separate savings account at a completely separate bank. BONUS POINTS if your bank will let you change the name of your account to "Holidays."
Add your money to your high-yield savings account all year, whether it's $50 or $100 per month. If you get an unexpected bonus check or refund, add that money in there too.
Keep track of your goal to make sure you will have enough saved for everyone on your list.
In November, withdraw your money and go shoppin guilt-free! Then, once the holidays are over, start the process all over again in January.
Remember, it's a lot more fun to go holiday shopping when you already have the money saved.