School is not the only thing that started in September. The holiday countdown has begun, as well. Here are ways to plan for the best gift of all: a debt-free holiday.
Rebecca Jarvis, chief business, economics and technology correspondent for ABC, said that it is time to start thinking of your holiday budget. Not just how much you want to spend on gifts, but also on food and travel. “Things you normally would not necessarily spend time doing if it weren’t for the holidays.”
Jarvis said there are ways to help you start mapping out a game plan for how to spend your money.
She recommends Mint, an app and website that can help with budgeting. When you set a budget, Mint lets you see inside your budget and tells you where that money is coming from and where it is going.
NerdWallet and Bankrate both have savings calculators that are user-friendly, Jarvis said. For example, “If you know you’re going to spend $1,200, they will tell you how much money, each day and each week, you need to be setting aside in order to achieve that goal,” Jarvis said.
And you don’t have to do it alone. She said it is good and important to get kids involved in the financial journey.
One thing you can do to make saving fun and part of the holiday enjoyment is envelope budgeting, Jarvis said.
Take out three envelopes: one for holiday gifts, one for food and one for travel. Put a few dollars here and there every week into each envelope. Then when it comes down to actually spending the money, you and your kids can see how much you’ve set aside for each.
“Kids pick up money habits more from parents than from any other place,” Jarvis said.
