The Jarrettsville Federal Blog

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t’s already December and we’re in the midst of the gift-giving season.  Some people are already prepared, having selected their gifts within a specific budget and time frame.  They are free to enjoy the holidays without that worry now.   Others are feeling the pressure of the upcoming weeks and they will be the prime candidates for overspending.   If this sounds like you, you’re not alone.

According to studies by a variety of research analysts including NPD, somewhere between 20 and 30 percent of gift-givers wait until the last minute to shop.  These people give different reasons for their procrastination. ranging from being too busy or overwhelmed to not having enough money in their bank accounts to complete their shopping.  The National Retail Federation (NRF) estimates the average person spends a little over $1,000 on holiday purchases.  If you’re part of that 30 percent of last-minute shoppers, and your reason is money, a Holiday Club Savings Account can help.  You can: 

1. Open a holiday club account as a gift for someone else and make payments for them throughout the year;
2. Vow not to be a last-minute shopper because of money next year and open a Holiday Club account for yourself;
3. Relax and come in by January 15 to open your own Holiday Club.

Whichever way you choose to solve your last-minute dilemmas, you’ll start a tradition of savings that will prepare your pocketbook and possibly put you in the other 70 percent of people who shop early.  Holiday Club accounts allow you to pay $2, $5, $10 or $20 per week for 50 weeks.  While you can open the account as early as October, you can still benefit from opening it in December or January.  Next October, you’ll still be thanking yourself for this strategic move.  Checks are mailed at the end of October/early November.

Start by paying attention to your expenditures this year.  If you are happy with all your purchases this year, decide what it will take to have enough money to outdo yourself next year.  Then decide how much you can put aside each week toward that goal.  Incorporate the Holiday Club payment schedule into your banking routine, making payments weekly, monthly or quarterly, according to your preference.  A Holiday Club does not require routine payments, but you will only receive back what you put in the account.  Therefore, it’s wise to choose a club that fits your budget.  You may open multiple clubs, depending on your plans.

You’ll earn interest on your Holiday Club account at the same rate as a statement savings.  Your checks are mailed at the end of October/early November.

Get out of that 30 percent of last-minute shoppers and give yourself the gift of a Holiday Club.  You’ll be glad you did.

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