While the holidays are a time of camaraderie and closeness with family and friends, they can also be a time of stress and anxiety when it comes to finances. Fortunately, Michigan State University Federal Credit Union (MSUFCU) has services that can help its members manage holiday stress and focus on the more important and meaningful aspects of the season.
“With the upcoming holiday season, many of us find ourselves stretching our budgets to cover the cost of gifts, travel, dining, etc. Because of this, it’s all too easy to end up in a financial slump at the very start of the new year,” said Deidre Davis, chief marketing officer for MSUFCU. “Through proper planning and execution, however, you have the power to keep a positive account balance while still enjoying the season.”
MSUFCU offers a number of products and services that can help members prepare and save for the holidays, including:
- Sub-savings accounts
“Save throughout the year by adding money to an account dedicated to holiday spending,” Davis said.
- Holiday/vacation accounts
“MSUFCU offers a special account limited to two withdrawals per year, which allows you to save without the temptation of spending the money throughout the year,” she explained.
- Skip-a-pay
“We also offer an option where you can skip a payment on a loan for a month. This will allow you to use the money on other things during the holidays,” Davis said. “You can do this twice per year, but be aware that you will still accrue interest.”
When preparing for the holidays, be sure to keep your finances in mind. Some ways Davis advised to keep your spending within reason and avoid starting the new year in a financial rut are to:
- Set a budget
- Make a plan before you begin spending to plan purchases around what you can afford, instead of ignoring price tags while shopping.
- Determine what you can spend overall, then allocate spending amounts for specific people.
- Make a list of gift ideas within the allocated amount to stay on budget.
- Start saving early
- You can use the resources offered by your financial institution to help you save money throughout the year or in the months/weeks leading up to the holidays.
- Create a sub-savings account
- Put money aside from each paycheck to increase savings over time.
- Encourage your family to save allowances, pocket change, etc. to learn the importance of saving and budgeting.
- Look for deals
- Start looking for deals as early as possible to save money and unnecessary trips to the store.
- Look online for deals on company websites or social media.
- Clip coupons and/or check for store mailings for additional savings.
- Shop online
- This can save you time and will allow you to compare prices.
- Be sure to factor in shipping cost and time to avoid gifts arriving late.
- Take advantage of credit card perks
- If spending on credit, use cards that offer incentives such as cash back or frequent flyer miles.
