It may seem difficult to think about saving money around the holidays. From gifts to gatherings, the costs can add up. But there are ways you can still enjoy the holidays without overspending and going into debt.

Creating a Holiday Budget

1. Set your spending limit: It is important to set your limit before you start budgeting and then stick to that limit.
2. Reduce your spending: Consider things like planning with your family and friends to draw names for gifts, rather than buying for everyone. It can also be helpful to create a gift list with price limits for each person.
3. Plan for as many expenses as possible: Anticipating your expenses can help you avoid overspending.

Once you have your budget created, be a smart shopper and resist too many sales. It can be enticing to want to take advantage of every flash sale, coupon, or rewards program, especially when you’re trying to save money. But taking part in too many seemingly good deals may end up costing you in the long run.

Tips to Save

With all the spending that can happen around the holidays, it’s still important to continue saving too. Financial experts say to develop a habit of saving and stick to it by making saving money a ritual.

1. Set up a “sinking fund”: This is one way you can start planning now to gradually save for holiday spending next year. A sinking fund is a savings account you dedicate for a certain expense, and you put money aside each month to pay for it. Tying a goal to your savings can turn the experience into something positive.
2. Automate your savings: This is one way to make saving easier, especially if you’re on a tight budget. Try having a set amount of money automatically transferred from your checking account into your savings account, even a small amount can make an impact in the long run. With auto transfer, you’re not putting yourself in the position to decide whether or not to save. You can talk with your bank about your options. 
3. Take a closer look: While automation can work well, financial experts advise you to check your statements regularly. That will help you make sure there are no surprise fees, deductions, or unauthorized transactions.
4. Find an accountability partner: This can be a family member or friend who will help keep you accountable with saving money. Your accountability partner should be someone who you know is going to check in and look out for your best interest.

Click here to view 105 ways to save money on CHFA’s website, under the Creating a Budget section.

As part of CHFA’s Own Your Tomorrow efforts to expand access to homeownership by providing equitable homeownership resources, CHFA launched a financial education series in September with Colorado-based nonprofit, Savings Collaborative. The courses in the series provided information on credit, debt, savings, setting goals, and building generational wealth. 

The series was launched as a pilot program.  The nonprofit also has an app with built-in tips and incentives to learn how to make it easy to save. 

Colorado Housing and Finance Authority

www.chfainfo.com