Start a holiday fund in January

The easiest way to pay for the holidays is to spread the cost over the whole year. A separate fund, a monthly amount and an automatic transfer do most of the work.

How to set it up

1. Add up last year's holiday spending, including travel and food
2. Divide by the months until your celebration
3. Open a separate savings account, or a named "bucket" if your bank offers them
4. Set an automatic transfer on payday
5. Leave it alone until the season starts

Starting late?

Starting in July or September still helps. Lower the budget to what you can save in the time left, rather than putting the difference on a card.

General educational information. Store policies and terms vary; check with the store. Dime Wise Club isn't paid by any store, bank or payment company.