Start Saving for Holiday Spending Now, Says NFCC - Other News


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Start Saving for Holiday Spending Now, Says NFCC

Start Saving for Holiday Spending Now, Says NFCC

Start Saving for Holiday Spending Now, Says NFCC
Tags: , , ...
The content is accurate at the time of publication and is subject to change.

The dog days of summer aren’t yet over, but it’s not too early to start thinking about the holiday season – at least not according to the National Foundation for Credit Counseling (NFCC).

With the average person projected to spend about $800 on gifts and other holiday-related purchases, the NFCC is issuing a consumer alert: if you don’t save up for the holidays, you could end up spending far more than that.

If folks put $1,000 in charges on their credit card – the go-to-strategy in cases of insufficient spending cash – and pay only the minimum amount due with an APR of 18%, the balance won’t be paid off for 12 years. Furthermore, they will end up paying a total of $2,353, rather than the $1,000 they originally spent.

The way to avoid this outcome is to start saving now. The NFCC recommends these five strategies for putting holiday money away before the season is upon us:

  1. Cut back on spending. Look for small ways to save on everyday expenses. Trimming just $1 per day from your daily expenses will net you an extra $150 over the next five months.

  2. Adjust your W-4 withholding to minimize your tax refund. Many people have too much money taken out of their paychecks, resulting in a nice refund on April 15. The average tax refund has been close to $3,000 in recent years. However, getting that money back before the end of the year will add to the amount available for holiday spending.

  3. Try to shave $10 per month off 10 spending categories. Some expenses are fixed: rent, mortgage and car payments. But others, like groceries, clothes, gas and entertainment, can be minimized with some small lifestyle adjustments. Save $100 each month when you spend $10 less in 10 budget categories.

  4. Sell things you no longer need. If you have items in good condition that others might want for their own holiday shopping, everyone wins when you sell them.

  5. Open a holiday savings account. It’s simple to open a separate savings account at the financial institution you already bank with. Keep your holiday savings in one place so funds don’t get mixed up with everyday spending money.

Gail Cunningham, NFCC spokesperson, recommends that people rethink their gift-giving strategies this year – especially if they still haven’t paid off last year’s holiday debt. “It makes no financial sense to pile new debt on top of old,” says Cunningham. “Kindness and experiences are meaningful substitutes for purchased gifts, and are remembered long after the wrapping paper and bows have been discarded.”

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Getting Holiday Shopping in Under the Wire
Getting Holiday Shopping in Under the Wire

Posted: December 21, 2015

If you’re not done with your holiday shopping and think you might just get it in under the wire, you’re not alone. Continue reading

Synchrony Financial Grant for the NFCC
Synchrony Financial Grant for the NFCC

Posted: January 19, 2016

Synchrony Financial is giving the National Foundation for Credit Counseling (NFCC) a grant totaling $4 million. Continue reading

Financial Worries Plague Military Members
Financial Worries Plague Military Members

Posted: May 21, 2014

They help their fellow citizens sleep at night knowing they’re safe from harm, but many military service members may not be sleeping too well themselves. Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn unlimited 1.5% cash back on every purchase, every day
For Average, Fair, Limited Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!