With a bit of financial planning, you can enjoy the holidays without the January debt hangover. Here’s your guide to making the most of the season while staying financially savvy.

Create a Realistic Budget

Start by setting clear spending limits for gifts, decorations, travel, and entertainment. A well-planned budget helps you allocate funds wisely and avoid impulse purchases. Click here for tips on creating your budget, or if you’re ready to start, you can use our Personal Budget Worksheet.

Save Early and Plan Ahead

Consider setting aside a small amount from each paycheck into a dedicated holiday fund. Alterna’s ‘Save the Change’ tool will round up your spending to the nearest dollar and transfer the difference into one of your Alterna savings accounts. You can also use short-term term deposits that may provide higher interest rates than traditional savings accounts and lock in money for a specified period of time so you aren’t tempted to dip into it.

Shop Smart and Use Rewards

Take advantage of sales, discounts, and loyalty programs to stretch your holiday budget. Online shopping and price comparison tools can help you find the best deals without the stress of crowded stores. Now may also be the time to redeem your ‘cash-back’ from your Alterna Cash Back Visa card.

Avoid Holiday Debt Traps

Relying heavily on high-interest credit cards can lead to a financial hangover in the new year. Prioritize paying with cash or debit when possible, and if you must use credit, make a plan to pay off balances quickly and consider using other typically lower interest credit options like your line of credit.

Gift Thoughtfully, Not Expensively

Remember, meaningful gifts don’t have to be expensive. Handmade gifts, experiences, or personalized items often carry more value than store-bought ones. Set a limit per person and stick to it.

Plan for the New Year

Once the holidays are over, take time to review your finances and set goals for the coming year. Reflecting on what worked and what didn’t, can help you plan better for the next holiday season.

Our advisors are here to help you set achievable goals. Call us at 1.877.560.0100 or make an appointment at your nearest branch to get started today.