SafeAmerica Credit Union

Holiday Budget

• By Kevin Alvarez

Make It A Happy Holiday Budget

It's tempting to get wrapped up in the commercialism of the holiday season, but without a proper holiday budget, overspending can place a financial strain on individuals and families well into the new year, and beyond.

People are successful when they set a realistic budget for spending. Focusing on non-traditional gifts, the joy of experiences and the resulting memories, can be just as rewarding without damaging your finances, especially as prices on essentials are rising.

To make it a happy holiday budget, consider rethinking your holiday plan, setting a budget and sticking with it.

Here are some concrete steps to avoid excess holiday debt and celebrate the season in a budget-conscious way:

1. Create A Holiday Budget

Write down a holiday budget that includes all planned spending—food, décor, travel, gifts, etc. This can help you see how much income you will need, set spend limits, and relieve uncertainty and financial stress. Had to use your Christmas Club savings earlier this year for an unexpected expense? Take advantage of seasonal work opportunities to help finance holiday spending.

2. Simplify the Season

This year, consider simplifying celebrations and find alternative ways to revel in the season. Resist the urge to splurge on decorating and large parties and choose to gather with family and friends without breaking your budget. As gas and grocery prices are expected to increase, rethink the elaborate (and costly) holiday dinner and invite your loved ones to "meet in the middle" for a more informal get-together. In lieu of hard-to-get items, gift an experience, a family portrait or an online class. Open a 529 savings plan for the kids—the gift that gives long-term.

Budget

3. Budget Your Time by Volunteering in Someone's Name

Celebrate those you love by giving back. Volunteer at a friend or loved one's favorite charity or provide a contribution on their behalf. Gift some elbow grease at a local Meals-on-Wheels, community center, humane society, or nonprofit organization that could use your help.

4. Set Holiday Budget Expectations

Thanksgiving gatherings could be the time to communicate this year's holiday plan. Such conversations can relieve stress for all involved and avoid undue disappointment. A recent survey shows that small children thrive in environments with fewer toys. Research shows that clutter can impact mental well-being in adults, particular women, and possibly spark increased levels of cortisol, a stress hormone.

5. Shop Smart

There is still time this season to monitor sales for the best deals. Should you use credit this holiday season, look for zero or low-interest payment options. If shopping online, in-store pickup may cut down on shipping costs. Look out for holiday shopping scams and leverage fraud protection via PayPal and credit cards. Use browser extensions (i.e., Honey, Rakuten, or Capital One Shopping) for additional savings. By "abandoning" your online shopping cart for 24-72 hours, the retailer may grant you a discount or perk.

In all, it is possible to make it a happy holiday budget. While gift giving is a long-standing holiday tradition, spending time with family and friends after months of pandemic isolation may be the most meaningful gift of all.

This information brought to you by GreenPath Financial Wellness.

• By Kevin Alvarez

These Holiday “Two-Do’s” Can Keep You Financially Healthy All Season

While the holidays are a festive time with family and friend, a potentially not-so-fun part of the season is the temptation to go overboard on holiday shopping. Whether it's gifts for everyone on your shopping list, refreshments to create memorable parties and other events, buying trendy decorations or other holiday related purchases, it can be a time of financial stress.

With a little planning, this can be your year for a financially healthier approach.

The following holiday "two-do's" can help you keep financially healthy through the season.

#1 Check Up On Your Credit History

Before the start of the season, take inventory of your overall credit history. A healthy credit score makes it easier to get credit if needed before the holidays, making you eligible for lower interest rates and saving you money in the long run. A low score typically means you’ll have to pay higher interest or could lead to denial of credit. Give yourself plenty of time before the holidays to make sure your information is correct. A good place to review your history is AnnualCreditReport.com.

  • Check your name, social security number and contact information.
  • Make sure all the accounts and credit inquiries on your report are truly yours.
  • Look to see if the payment histories, balances and account status are all correct. If you find mistakes, file a correction directly with the credit reporting agency on their website.

After checking the accuracy of your credit reports, remember that the most important things you can do to maintain a strong credit score is pay your bills on time and keep your debt balances low.

#2 Make A Plan

Take the time to develop a spending plan for the holiday season, complete with your full
gift list, incidentals like cards and gift-wrapping, entertainment and travel plans, event schedules and other items needing financial resources. A holiday budget can help you stay on track.

  • Prioritize holiday-related spending to decide what is non-negotiable, and cut where you can. For instance, can you cut back on entertaining this year by hosting pot-lucks, or plan low-cost family outings to free seasonal concerts? Can you get creative when it comes to gift giving, setting a purchase limit to family gifts?
  • Make a written spending plan to determine how much money you will devote to your regular bills, living expenses and savings as well as the seasonal purchases. By setting your budget in advance, it’s easier to manage your money to meet your goals.
  • Add up all your income sources to find out how much money you have to apply to seasonal purchases including travel and entertaining.
  • Keep your spending plan on your phone or device so it is always with you as you begin holiday related purchases. Track your purchases on every shopping trip or visit to an online store. By keeping a running total of holiday expenditures, you won’t be surprised when the credit card bills start coming in January.
  • Shopping with cash rather than credit cards is a good way to set a limit on spending and avoid temptation. When the cash you have allotted for gift giving is gone, it is gone. Credit cards enable you to spend beyond your limitations.

Fun For The Festivities

While everyone's goals are different, keeping the focus on these “Two-DO’s” of financial health can help you celebrate without over-spending or maxing out credit cards.

For futher guidance, GreenPath offers credit report reviews, credit counseling and debt management services to set you up for success this season. Our Financial Experts can also help you create your own personalized spending plan.

This information has been brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

This Holiday Season, Could Less Be More?

Another holiday season is upon us, and for the second year in a row, the impacts of COVID will likely color the celebrations.

While the season is an opportunity to focus on the things that matter most in life, exchanging gifts is a long-standing tradition and a way to share joy with loved ones . Gift-giving is likely to be even more amped up this year, which might bring upon financial strain.

Research shows that many shoppers intend to spend more money on the 2021 holidays due to COVID-19's impact on 2020 celebrations.

In fact, 48% of surveyed consumers said they plan to spend more money on the 2021 holiday season due to the pandemic dampening last year's plans. In addition, due to the shortages on goods caused by the pandemic, we may be tempted to spend more money in order to get gifts that are in short supply. Regardless of the pandemic, seven in ten respondents said they typically go over budget during the holidays,

Our Partners at GreenPath Financial Wellness, have some advice for maximizing the joy, while staying within a holiday budget.

Simplify the Season

For less financial stress, consider simplifying celebrations and entertaining. Rethink the complicated decorating, holiday cards and other traditions. Instead of costly parties, consider arranging a family hike, a visit to a museum, or even volunteering with friends and family as a way to honor the season. After the event, gather for hot chocolate or a budget-friendly potluck or a budget-friendly potluck. Spending time with people you love is a true gift. Think creatively of how to give memories to each other, which costs nothing.

Set Expectations

Year after year, studies show that families with children are more likely to take on debt and go all in on gift spending across the board, With some planning, families can successfully navigate holiday spending expectations by paring down on the "stuff." Get everyone in the spirit by setting a gift limit so expectations are clear. The kids might be better off in the long run! A recent survey shows that small children thrive in environments with fewer toys, and that a play area with only a few favorite toys leads to higher quality of play.

Volunteer in Someone's Name

Is there a friend or loved one in your gift list who has trouble getting out and about, yet has a favorite charity that is meaningful to them? Volunteer in their name to honor them and provide a gift to both the organization and the individual. Whether raking leaves at a community center, walking the puppies at the Humane Society, delivering Meals on Wheels, or another service, volunteering in someone's name is a win-win!

Create a Holiday Spending Plan

Finally, putting together a holiday spending plan helps relieve uncertainty and financial stress. A simple budget can help you figure out how to meet both your short and long-term financial goals — especially during the holidays. The plan can help you get an idea of what you have to work with in terms of income, what your commitments are, and what you have remaining to devote to your goals. Remember, nothing is set in stone, especially during a busy holiday season. You're in charge of your plan and your goals. Review your holiday spending plan and adjust to trim expenses or direct money toward something different.

This information has been brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

5 Holiday Spending Tips to bring You Less Stress (and More Joy!) This Holiday Season

Information brought to you by our partner, GreenPath Financial Wellness

After a year full of twists and turns brought on by a global pandemic, many Americans are understandably looking forward to the holiday season.

This year, many Americans may find they are dealing with financial setbacks such as a loss of employment, reduced income, or other unanticipated expenses that may make it more difficult to avoid having holiday debt follow them into the new year.

Here are five tips designed to give you less stress and more joy this COVID holiday season:

Set a Holiday Spending Limit

During the holidays, it can be easy to let spending get out of control. Put a cap on your spending by creating a holiday budget / spending plan.

Be sure to factor in additional non-gift related expenses that can easily add up—things like holiday photos, decorations, food, and if your family gathering is cancelled, shipping of gifts to love ones.

Avoid Putting Holiday Debt on Credit Cards

The number one of financial wellness? Avoid spending money you don’t have. While it’s easy to do, putting holiday spending on credit cards can be risky—
especially if you don’t have the funds to pay it off when the bill comes due.

According to a recent survey, Americans racked up an average of $1,325 in holiday debt. Of those surveyed, 75% said they wouldn’t be able to pay it off in January, with 15% saying they only intended to pay the minimum monthly payment. In case you’re wondering, that translates to over $600 in interest and 5 years of making payments—ouch!

Trade Pricey for Priceless

A great gift doesn’t have to be expensive. Think outside the box and treat your loved ones to a thoughtful gift that generates excitement without the price tag.
Maybe that’s a handmade item, DIY project, a fun experience, a coupon book, or just the gift of your time.

Keep Your Personal Info Safe

The holiday season is a time when people are more vulnerable to identity theft scams. Not only are they making more purchases than at any other time of year, but they are often distracted when doing so.

According a recent Experian study, as much as 43% of holiday shopping identity theft occurs online. As the current COVID environment drives more people
than ever to online shopping, it’s important to be aware of the best ways to protect yourself from identity theft:

  • Stay up-to-date with online scams
  • Use strong account passwords
  • Monitor your credit report

Stay the Course with Free Financial Counseling from GreenPath

If you are caught up in the holiday frenzy, and you are stressed about overspending, the counselors at GreenPath can help. In fact, 90% of people surveyed report feeling better prepared to handle their finances after speaking with a financial counselor. Get a head of your holiday finances and connect with a counselor today—it’s free, no pressure, and 100% confidential.

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