You might be thinking that we just got done with the holiday season, but the next one will be here before we know it! With rising costs it can cause havoc for your budget. In 2021, the National Research Federation said that Americans spent around $1000 just on holiday spending. That number is expected to increase by at least 20% in 2022, so you'll want to start saving for the holidays sooner rather than later. Looking for an easy way to save? Round up to a Holiday Club Account at Cobalt!
Benefits of a Cobalt Holiday Club Account
Incremental Savings Over Time
If you utilize the Cobalt Round Up program in combination with the Holiday Club, you can save a little bit at a time without even noticing! Over time those small amounts can add up to the larger amount you need for your holiday spending. When you sign up for Round Up, each time you use your Cobalt Debit Card the purchase is rounded to the next dollar and the difference is automatically transferred into your Holiday Club account (or other savings account of your choosing).
For example if you were to spend $2.70 on coffee each morning, the purchase amount would round up to $3.00. The bill would be paid and the extra 30 cents would move into your Holiday Club! Over the course of the year, those 30 cents each day would add up to be $78 of savings. Now think about what that number would be if you rounded up all of your purchases!
Earn Money on Your Money
Another benefit of the Holiday Club account is that it is an interest bearing account - like a CD. Not only are you saving, but you are earning dividends!
Reduce Stress
According to BusinessWire, 42% of Americans say that holiday spending is the most stressful part of the holidays and that number keeps rising.
A little less than a third of Americans will have a plan or budget for holiday spending. Having a set budget takes the worry out of where the money is going to come from. It also gives you peace of mind, knowing what you are able to spend comfortably, which can lead to less spending regret in the long run.
According to Bankrate the earlier you start planning and saving for holiday spending, especially if it is before July, the less stress you have about the holidays in general.
Limit Holiday Debt
More than 41% of Americans go into debt just on holiday spending. Planning ahead can prevent you from entering a new year with a mountain of debt!
Spring is a smart time to start thinking about (and implementing) your financial goals for the holiday season. Set yourself up for success by beginning your holiday saving early by opening a Cobalt Holiday Club account and Round up to it!
If you want to save for an annual vacation too - we have a Vacation Club for that!
