Start Saving for the Holidays with These Money Tips

The holiday season brings loved ones together, but it ALSO brings financial stress. From travel and presents to festive meals and decorations, the costs can snowball very quickly. That’s why starting to save money today will make a BIG DIFFERENCE later!

Whether you are stationed stateside or overseas, planning ahead is the secret to making the season bright—without breaking the bank. Let’s walk through the smart ways your family can start saving for the holiday season.

How Much Does the Holiday Season Really Cost in America?

If your holiday shopping has ever gotten a little out of hand, you are not alone! Across the country, families are feeling the pressure of seasonal expenses:

• 65% experienced financial stress during the holidays last year, and some even said it affected their ability to enjoy the season.¹
• United States consumers spent nearly $1 trillion on holiday retail sales in 2024—about $900 per person.²
• 43% of Americans say they regret overspending during the holidays.³
• Over one-third went into holiday-related debt, averaging more than $1,100 per person.³
• 85% of holiday consumers relied on credit cards or loans to cover their holiday purchases last year.⁴

These numbers are more than just statistics. They represent real families trying to make the holidays special. But with the right plan, your family can enjoy the season without feeling the financial pinch.

How to Save Money for the Holiday Season

So, what’s the best way to save money this year? Explore holiday savings tips:

1. Build a Holiday Budget & Spending Plan

Begin by thinking through your family’s holiday priorities—whether it’s travel, gift-giving, big dinners, or family traditions. Write down every expected cost, from airline tickets to stocking stuffers. Then, spread that total across your remaining paychecks, which will help you determine how much to set aside during each pay period.

FAMILY BUDGET TIP: Look back at last year’s holiday spending to accurately estimate this year’s needs (credit card statements help)!

2. Open a Separate Holiday Fund

Keeping your holiday savings in its own account makes everything more organized, and you will be less tempted to spend it for everyday expenses. When your finances are separate, it becomes easier to track your progress and stay committed to growing your holiday savings.

FAMILY BANKING TIP: For families who want their savings to grow a little faster, consider a money market account. It offers higher interest rates than regular savings accounts, which helps you stretch your dollars even further.

3. Automate Your Savings

One of the simplest ways to stay consistent with building your holiday fund includes automating your savings. Set it and forget it! When you automatically transfer money from checking to savings, you make consistent progress towards your goal without needing a reminder. The best part? Your money can quietly earn interest and grow over time, giving you extra funds for holiday expenses!

4. Use a Savings Round Up Feature

If you are juggling a busy family life, using a savings round up program might be the solution you didn’t know you needed. One great option is Saving Cents from Armed Forces Bank, which works like a digital piggy bank for everyday transactions. Every time you make a purchase with your debit card, the amount is rounded up, then the spare change goes directly into your savings.

For example, let’s say you spend $6.20 on coffee. When you round up debit card purchases to the nearest dollar through Saving Cents, $0.80 goes into your separate savings account at the end of the day. But if you opt to round up purchases to the nearest $5.00 mark, then $3.80 goes into savings. Over time, small contributions grow your holiday fund from behind the scenes.

5. Money Management Tools & Apps

More families are using online financial tools for money management. According to recent research findings, 88% of budgeting app users find them helpful, and 80% of users engage with them weekly. When it comes to holiday savings, the right financial platform can do more than track spending. It helps help you set specific goals, monitor your progress, categorize your purchases, and even manage debt.

FAMILY FINANCE TIP: If you’re part of the Armed Forces Bank family, check out our digital money management tool My Finance360. This free resource is designed to simplify your finances. In addition to the core features offered by most budgeting apps, My Finance360 also lets you connect all your accounts from multiple banks to provide a full view of your income, spending, and saving. Having this kind of visibility makes it easier to spot opportunities to cut back and redirect those dollars toward your holiday saving goals.

Budget-Friendly Holiday Shopping Tips

When it’s time to shop for your family, these smart strategies can help you maximize your budget:

• Start Before the Rush: Shopping early lets you avoid price hikes and provide more time to find gifts that your loved ones will genuinely like.
• Look for the Best Deals: Use special websites or apps that compare prices so you know you are getting a good offer.
• Use Your Rewards: Cash in your credit card rewards, store loyalty points, or travel perks to cut down on grocery, gifts, and travel expenses.
• Set a Limit for Each Person: By deciding on a clear budget per person, it will keep your overall spending in check.
• Stick to Your List: Keep with your plan! Don’t buy things that aren’t on your list. Impulse purchases are the fastest way to blow your budget, especially when shopping online.

Grow Your Holiday Savings with a Money Market Account

If you are saving for holiday presents, travel, or family traditions, a money market account can get you there faster. At Armed Forces Bank, the Premier Money Market Account is built to support families who want to grow their savings while keeping it accessible. Here’s what sets it apart:

• Earn more with our leading money market interest rates
• Access your money whenever you need it with your debit card, checkbook, and digital transfers
• Enjoy peace of mind with FDIC coverage
• Track savings and set transfers with mobile* and online banking

The holidays sneak up quickly. Let Armed Forces Bank be your family savings partner—your future self will thank you this winter! Visit our online military bank and choose the savings solution that fits your family goals!

Bank for Families

HOLIDAY FAST LINKS:
Savings Round Up Program
Budgeting Tool: My Finance360
Savings Goal Calculator
Rewards Checking for Extra Perks**

HOLIDAY BANKING ARTICLES:
Avoid these Holiday Scams
How to Build Credit while Holiday Shopping
Separate Bank Accounts for Holiday Savings
Holiday Financial Support with Personal Loans