We all love the holidays—gathering with family, sharing gifts, indulging in festive treats but the financial aftermath can feel like a bad hangover. Imagine entering January with zero regrets and no towering credit card bills staring you in the face.
Jessie Wright, the Communications and Community Events Specialist at Northern Credit Union in Sault Ste. Marie says, “The key to avoiding a credit card hangover in January is planning ahead for holiday spending. Northern Credit Union understands how people can get swept up in the holiday hustle, splurging on parties and presents and we’re here to help people stay on track with some key holiday spending tips.”
Automate your holiday saving
Opening a “holiday fund” account with its own debit card is like setting up a personal spending guardrail for the holidays. Setting up an automated weekly transfer from your regular account to your “holiday fund” account is a great solution for those who might struggle with budgeting. Jessie says, “Instead of dipping into your main account and risking overspending, you only spend the cash in your holiday fund. If you load $200 into a ‘holiday account’ and it’s the only debit card you take on your shopping trip that day, you know you’re limited in spending whatever you’ve budgeted for that day.”
Without a budget, your holiday shopping will have no limits, which is a slippery slope to debt. Having a dedicated card makes it easy to separate festive spending from everyday expenses. Northern Credit Union’s Holiday Budget Builder is a great tool to track holiday spending and can be accessed by clicking this link.
Shop second-hand markets
Shopping at second-hand markets during the holiday season is a smart way to save money while finding unique gifts or one-of-a-kind treasures at a fraction of retail prices.
Jessie says, “Shopping second-hand is something that we highly encourage, not only for the financial aspect but also for the sustainability aspect of it. Consumerism around the holiday season can get out of hand. By shopping second-hand, you’re supporting local businesses, reducing your environmental impact. It’s a win for your wallet and the planet.”
Don’t be afraid to return or re-gift
Sometimes you get something that just doesn’t serve you. Maybe you don’t like it, but you know someone who will. Re-gifting is not talked about much in this economy, but it’s more common than we think. If you’re on a budget, it’s a smart way to save money while still giving meaningful gifts.
Returning something you won’t use frees up cash for things you need. And re-gifting? It’s eco-friendly and thoughtful – if you’ve received something that isn’t quite your style but is perfect for someone else, why not pass it on?
Buy early, thank yourself later
Getting a head start on holiday shopping has some perks. You can avoid the last-minute rush and stress that comes with crowded stores and needed items that are sold out. Jessie points out, “If you spread the shopping period out over a longer period, you’re not spending so much all at once and it’s a little easier to stretch your budget that way.”
It also gives you time to hunt for the best deals and avoid panic buying. Jessie also advises shoppers to beware of Black Friday deals. To truly snag a bargain, do your homework: compare prices, check previous costs, and read reviews. A little research can help you avoid falling for gimmicks and ensure you’re genuinely getting the best deal.
Don’t forget the decorations
While decorating the tree and planning a feast is all part of the fun, the costs can sneak up on you if you’re not careful. That shiny new garland or gourmet appetizer platter might seem small, but they add up quickly. Jessie reminds shoppers to include holiday decorations and food in their budget to avoid blind spending during the holiday season.
Avoiding the credit card hangover
When the January credit card bill arrives, it can hurt and be a clear signal that the holiday fun is over. After the holidays life continues and it’s not always a fresh start. By sticking to a budget, you’ll stay on track, reduce stress, and start the new year with peace of mind without facing the dreaded post-holiday hangover. You’ll be able to focus on what truly matters which is connection, kindness, and making memories.
Following Northern Credit Union’s smart budgeting tips and financial advice, you can enjoy the festive season without the stress of financial regrets. To set up a holiday fund account or discuss additional ways to save contact Northern Credit Union at (866) 413-7071 or visit their website.