'Tis the Season Not to Overspend

As the holiday season approaches, Cedar Rapids Bank & Trust encourages you to avoid a holiday spending hangover by planning ahead. “Gifts, decorations, food and travel combined, make the winter holidays the most expensive time of the year,” said James Klein, CRBT Senior Vice President of Retail Banking. “Establish a budget for holiday spending, or the debt of Christmas past could haunt you well into the new year.”

Cedar Rapids Bank & Trust encourages clients to take control of holiday spending by following these tips:

Develop a Budget

Before you start your holiday shopping, develop a realistic holiday budget. Be as detailed as possible and include items like postage, gift wrap, greeting cards, decorations, food, travel expenses and charitable contributions.

Make a List and Check it Twice

Create a gift list that is limited to family and close friends. Know what you want to buy for each person and how much you want to spend. Send greeting cards or handwritten letters of appreciation to those outside of your list. Home-baked goods, simple crafts or hand-made gift certificates for your time or talents are often less expensive and more appreciated than what you would buy at the mall or big-box store.

Shop for Bargains

Avoid shopping while rushed or under pressure which can lead to overspending. Begin early so that you have time to comparison shop. Always re-evaluate your purchase to make sure that it is appropriate and within your budget.

Use Credit Wisely

"Your credit card balance shouldn't be a complete surprise to you when you open your statement in January," Klein says. If using credit for holiday spending, limit use and carry only one credit card with the lowest interest rate. Your plan should also include a specific date by which you intend to pay off your holiday credit card bills. Check credit card statements carefully for unauthorized charges and report such charges immediately to your bank or credit card company.

We are committed to helping you save for the future. Call us at 319.862.2728 and ask about CRBT’s Holiday Club Savings Account that allows you to set aside money throughout the year for your holiday spending!