3 Key Takeaways
- Start saving early for the holidays to reduce stress and stay in control of your budget.
- Consider using CENT Credit Union’s Christmas Club account instead of relying on a credit card.
- Automate your savings and set a realistic plan so you can enjoy the season without financial worry.
Why Planning Ahead for the Holidays Matters
The holiday season can be one of the most expensive times of the year. Gifts, travel, food, and decorations all add up quickly. Planning ahead helps you stay focused and avoid that last-minute rush to cover costs.
When you save throughout the year, you’re able to buy what you truly want to give – without the stress of big bills in January. You also protect your credit by spending from savings rather than borrowing. The key is to treat your holiday budget like any other financial goal. Plan for it, build toward it, and enjoy it when the time comes.
The CENT Christmas Club Account: A Simple Way to Prepare
CENT Credit Union’s Christmas Club account is designed for one purpose: helping you save for holiday spending.
How it works:
-
You choose how much to deposit throughout the year.
-
Funds stay safely tucked away until November 1, when they automatically transfer into your Regular Share account.
-
The account earns a competitive rate, so it grows while you wait.
CENT’s Christmas Club account helps remove the temptation to spend before the holidays arrive. The timing also lines up perfectly with early-season sales and travel plans.
If you want to see how to open an account or set up automatic transfers, visit the Christmas Club page here: https://www.centcu.org/christmas-club/
Saving vs. Charging: A Simple Comparison
|
Feature |
Credit Card |
Christmas Club Account |
|
Upfront Cost |
You buy now and pay later. |
You save in advance and spend what you have. |
|
Interest |
You may pay high rates if you carry a balance. |
You earn interest instead of paying it. |
|
Budget Control |
Easy to overspend since it doesn’t feel like real money. |
You spend only what you’ve saved. |
|
Debt Risk |
High if balances roll over. |
None if you stick to your savings. |
|
Timing |
Immediate, but can lead to regret later. |
Funds arrive Nov. 1, right when you need them. |
Using credit cards can have a place if you pay off the balance immediately or want rewards, but too often holiday spending turns into months of payments. The Christmas Club approach builds discipline and peace of mind instead.
Steps to Get Your Finances Ready for the Holidays
Step 1: Set your budget.
Estimate how much you’ll need for gifts, travel, food, and other expenses. For example, if your total is $1,000, aim to save around $85 per month starting in January.
Step 2: Open a Christmas Club account.
If you’re not yet a member, you can join CENT and set up an automatic transfer so your savings grow without effort. Learn more here: https://www.centcu.org/become-a-member/
Step 3: Check your progress.
Review your savings each month using online banking or the CENT mobile app. Regular check-ins help you stay motivated.
Step 4: Limit credit card use.
Try to use your savings first. If you do use a card, pay it off in full each month to avoid interest charges.
Step 5: Plan your spending in November.
When the funds transfer to your account on November 1, make a simple list of what you’ll spend and stick to it.
Step 6: Review in January.
After the holidays, see how your plan worked. If you came up short, adjust your savings goal for next year.
Why CENT Credit Union Makes CENTs
The holidays should be about time with family and friends, not worrying about credit card bills. CENT Credit Union’s Christmas Club account was created to help you enjoy the season without debt hanging over you.
Your savings grow throughout the year, then become available right when you need them. That simple shift from borrowing to preparing can make a big difference in your financial confidence.
Start now by visiting the CENT Christmas Club page. A few minutes today can help you start next holiday season already ready.
Happy holiday planning! 🎄
This article is for educational purposes. Individual circumstances vary, and we recommend consulting with our mortgage specialists to determine the best financing options for your specific situation. All loan applications subject to approval and standard underwriting criteria.
CENT Credit Union is dedicated to empowering our North and Northwest Iowa members with financial know-how. For more tips and resources, check out our Making CENTs blog or chat with our team at any of our locations.
CENT Credit Union is Federally Insured by NCUA. NMLS# 409396. Equal Housing Lender.