In this 2 Minute Q&A Tuesday, we’re going over some of my favorite frugal money tips and traditions during holiday season. I know this is a broad topic, but that’s what made this video so much fun to shoot. Since changing up our family traditions due to our debt-free journey, having kids, and now COVID. I think we can all benefit from some fun and light financial tips that don’t feel too overwhelming.
I know for me, it was a pleasure to share some of the ways my family celebrates the holidays. Plus some financial tweaks we’ve made to our spending patterns when it comes to Christmas.
Here is a list of the topics covered in this Q&A.
- Christmas Sinking Funds
- The High-5 Banking Method
- Favorite holiday drink
- Saving money on gifts
- Going over budget
- Favorite type of gifts
- Non-Traditional gifts like 529 Plan contributions
- Favorite holiday dish
- Favorite family tradition
- Teaching kids about money during Christmas
Here are two of the best Christmas questions that can help you gift yourself some peace of mind when it comes to money.
Create a Christmas Sinking Fund
The best way to save for Christmas is to save for it ahead of time. One way you can do this is by saving little by little each month in your Short-Term Goals Savings Account of the High-5 Banking Method. This sinking fund strategy is used for all holiday budgets and Christmas is one you definitely want to add as a yearly goal to save up for. Going into debt for presents isn’t what the holidays are about. Start early, so you can save a more realistic amount for your Christmas budget. Another way to save for the holidays is to re-purpose your credit card cashback to cover your Christmas budget. This is something we did this year and it’s been a great help.
When it comes to gift-giving, we love giving from the heart. The whole point is to remind your loved ones that you are thinking of them and what they value. One of the top things we value in our home is our kid’s education. My family always focuses on gifts that spark creativity, education, or an investment in the kids. The best way to gift a non-traditional gift during the holidays is to contribute to the kid’s 529 college savings plan. Any money you put into this account will be automatically invested in the kid’s future to fund their education or even start a business. This is a gift that keeps on giving when you consider all of the growth the funds will gain by the time the kids are older.
This has been one of the most difficult holidays to share tips on. With COVID spreading like wildfire and jobs starting to be cut, I want you to remember what the holidays are truly about. Being healthy, having your family, a roof over your head, and food in the fridge is the best gift of all. I highly recommend avoiding any type of credit card debt during this holiday especially! Your financial peace of mind is necessary to get through these tough times. I hope you enjoy this content and that you have an amazingly safe Holiday.