Monday, November 26, 2012
Money Monday: Holiday Savings Club
Holiday shopping is always a balancing act between buying the presents you want, and keeping your spending under control. But there's an easy way to pay for those gifts. 7's Lynn Martinez is here to tell us how.
WSVN -- Gary Wood never stresses about his holiday spending.
When it's time to make out the family Christmas list, he knows he has ready cash because he's saved it throughout the year with his credit union's Holiday Club.
Gary Wood: "You don't worry where the money is coming from, you've already saved it from Jan. through October."
Marylen Yiris counts on her club account.
Marylen Yiris: "Basically, a little bit of money comes out from each of our paychecks and goes into that account. We don't think about it."
Many banks and credit unions like Tropical Financial offer holiday clubs.
You just open an account and decide how much to put in every month. Deposits can be made in person or through payroll deduction. Save all year then in October, the money is transferred into checking or savings just in time for holiday shopping.
Amy McGraw: "You can save as little as $5 a week, $10 a week, it's really up to you. Set a goal based on how much you normally spend for Christmas and starting at the beginning of the year and save throughout the year so you're not at the end of the year spending all that on your credit cards."
Gary's had a club account for more than 30 years. He's learned how to use it to his best advantage.
Gary Wood: "You'll use your credit card while you're out and then you'll use the holiday club to pay the credit card off so you do both. You can get the benefits of the credit card, the miles for the airlines then use the money out of the Christmas club to pay for the credit card."
Marylen uses her holiday club for Christmas and also dips into it during the summer to pay for her sons' summer camps.
Marylen Yiris: "You don't even think about it until you need the funds. They're there. It's peace of mind. It's one of those things as a mom I have my little back up plan."
Making deposits all year long helps take the financial strain out of the holidays.
You can also adjust the amount you add to your holiday club account as the year goes on. Check with your bank or credit union to see what their rules are. If you'd like to learn more about holiday clubs just go to our website.
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FOR MORE INFORMATION:
Tropical Financial Credit Untion
Holiday Club Account