top of page

Christmas is Coming!

Welcome to the month of June! While it may seem peculiar to talk about Christmas in this early summer season, the truth is, it's never too early to start saving for the most magical time of the year. In fact, planning ahead and setting a budget for Christmas can save you from the financial stress that often accompanies the holiday season. By taking a proactive approach and beginning your preparations now, you'll be able to enjoy the holidays with peace of mind, avoiding credit card debt and ensuring a smoother and more joyful holiday experience. So let's dive into the importance of saving, the impact of relying on credit cards, and how setting gift-giving expectations can make your holidays more manageable.

The Importance of Saving

Saving for Christmas is not just a practical approach; it's an essential one. By starting early, you give yourself plenty of time to save money, spreading out the financial burden over several months instead of dealing with a last-minute crunch. Saving ensures that you can provide the gifts and experiences your loved ones deserve without compromising your financial stability.

To begin, set a realistic budget by considering your income, current expenses, and your desired level of holiday spending. Creating a savings goal can help you determine how much to set aside each month. Consider automating your savings by setting up a separate account or using budgeting apps that can track your progress. By saving consistently, you'll be amazed at how quickly your funds accumulate, leaving you with a comfortable buffer for the holiday season.

This is precisely where Sinking Funds come into play. If you've listened to my podcast for a while you'll know that my wife and I love sinking funds. We use them for everything (which isn't the best approach for everyone). But it allows us to save for Christmas and gift-giving all year long. Then Christmas can be a much more enjoyable endeavor each time it comes around. So taking that monthly savings goal that you identify and putting it aside each month as you budget is one of the best ways to prep your wallet for Christmas.

Don't pay for Christmas in June

One of the biggest traps during the holiday season is relying on credit cards to cover expenses. While it may seem convenient at the time, the long-term consequences can be detrimental to your financial well-being. Credit card debt often comes with high-interest rates and minimum payments that can stretch your budget thin for months or even years.

By saving in advance, you can break free from the credit card cycle and enjoy a debt-free holiday season. Cash on hand lets you make informed purchasing decisions, taking advantage of sales, discounts, and special offers. Moreover, avoiding credit card debt enables you to start the new year on a positive financial note, without the burden of lingering obligations.

As interest rates continue to rise so do your variable credit card rates. Credit cards are where banks and credit unions make all their money. The impact that credit card debt can have on Christmas is huge. It can make you feel like you can't provide a fun Christmas time. Which can be true. It can put you in a really challenging position. I know that it may take a little while to get out of credit card debt. But you can do it and then you can continue to put the good habits you've built towards saving for Christmas proactively.

Setting gift-giving expectations

Let's face it gift-giving can be overwhelming. The pressure to find the perfect present for everyone on your list often leads to overspending and unnecessary stress. Setting gift-giving expectations with your loved ones can alleviate these burdens and create a more enjoyable holiday experience for everyone involved.

Communicate openly with your family and friends about your desire to create a more meaningful and manageable holiday season. Encourage alternative gift-giving ideas, such as homemade presents, experiences, or charitable donations. Emphasize the value of spending quality time together rather than focusing solely on material possessions. By setting realistic expectations, you can alleviate the financial strain and foster a deeper sense of connection and gratitude during the holidays.

As we talked about on my podcast episode about preparing for Summer. Your honest, open, and communicated expectations will likely alleviate the same burden from other people. It may happen that a relationship may be harmed by setting your gift-giving expectations. But it is unlikely. People just might appreciate the reset and decreased expectations. Give it a shot and start talking about it now before the pressure is on!

My thoughts on prepping for Christmas

I'd like to share my and my wife's experience with Christmas. While we do save throughout the year it can still be a challenging time. The expectations are always the point where we struggle. But it does make it easier knowing that we have some money set aside beforehand. We don't find ourselves in the pinch that all 3 of the topics covered today can cause.

I think that summer may be the best time to start talking about the points that are brought up in this blog post. Why? Because the pressure isn't mounting yet. You don't have to worry about the earlier shopper feeling upset because they already bought all their gifts just before you said you didn't want to do a lot of gifts this year. So go out and have a money talk about next Christmas!


Money Talk with Skyler Fleming

Listen wherever you find your podcasts or on Spotify

8 views0 comments

Recent Posts

See All


bottom of page