Personal Finances During the Holidays

The end of the year is a busy season. From holiday shopping to event planning, it can be difficult to keep money top of mind. What if you get to the holidays and blow through your savings that you’ve been working on growing all year? How do you find extra money to support to nonprofits when they need it most? Managing your money during the holidays doesn’t have to be so hard. With the right steps in place and money saving tips in mind, you can conquer the craziness and enjoy the holiday season.

Online Holiday Shopping Safety

As online shopping becomes a more popular way to buy Christmas gifts, you need to make sure you do its safely. It can be easy to forget some security tips because you’re in a rush. After all, every online retailer has the correct precautions in place, right? Nope. Keep these online shopping tips in mind as you prepare to shop so you don’t compromise your personal information.

Securely shop. An easy tip to follow that can help reduce the risk of your personal information being hacked is to check the URL of the websites you use. If you are on a website that starts with “https” then that website has secure safeguards in place to help protect your information. If it begins with “http” then it’s not as secure. Find a different website to shop from. You can also look for the padlock symbol before the URL for added security.

Avoid public Wi-Fi. Free public Wi-Fi is a convenient method for getting online to make purchases, but it often isn’t a safe option. Free public Wi-Fi is easier for hackers to breach than private Wi-Fi, like what you have at your house. If you do want to shop in a public space, you can use the cellular network on your phone or turn on a personal hotspot so you can shop from your laptop while using your cellular network which is more secure that public Wi-Fi.

Change your passwords. Hackers can access your personal information from a retailer you recently used in a data breach. While you can’t help that the information was leaked, you have the power to update your passwords. Changing your passwords every few months reduces the likelihood of your personal information being shared with scammers.

You can find out if passwords in your Google Account may have been exposed, are weak, or are used in multiple accounts. Then, you can change any unsafe passwords to keep your accounts more secure. Simply click the three dots at the top of your Google browser, go to Settings > Passwords & autofill > Google Password Manager > Checkup. From there you’ll be able to see if you currently have any compromised passwords. If you do, it’s best to change them right away to reduce your risk of getting hacked.  

Update your anti-virus software. Desktop and home computer users can use an anti-virus software to help safeguard personal information that may be stored on your device. Subscriptions to plans like these can be low-cost. Updates are often released sporadically throughout the year. When you notice that one is available, update the software as soon as possible. Make sure you renew your plan each year to stay secure.

Monitor your bank accounts. As you shop and check your account balances to make sure you don’t overdraft or stay on budget, look at all the purchases in your account to make sure they are legit. Scammers are on the move during this busy season, so they’re looking for accounts to hack. If you notice any suspicious charges, let us know so we can help resolve the issue and keep your information safe.

Credit Card Rewards Tips

A budget-friendly way to shop this time of year is to use your credit card rewards. The rewards you’ve built up during the year can be cashed in for generous amounts all at once during the holiday season to reduce the cost that the holiday season brings. Check out these tips to get the most out your credit card.

Start with the necessities. Inflation was high this year. Before you begin shopping for gifts, you might find yourself in need of some necessities to keep your home in shape. Use your rewards points for gift cards that you can use to buy some home necessities, such as bath towels, batteries, snow shovels, and more.

Enjoy a meal out. Going out to eat with friends is a great way to catch up and enjoy the holidays together. Plan a few days ahead of time where you are going to eat so you can redeem your points for a gift card to that restaurant. Enjoy the night out! Or you can bring it back to your place with catering and stay warm and off the roads.

Help a non-profit. Local charities and non-profit organizations often run short on supplies this time of year. You can use your reward points to buy items they need or donate a gift card for the staff to do the shopping. Giving back to the community this time of year is a great way to spread holiday cheer.

Give a versatile gift. What’s the perfect gift for someone who is hard to shop for? A gift card! Redeem your rewards points for a gift card to their favorite store. When your loved one finds the item they want, they’ll have the gift card from you to make the purchase.

Holiday Budgeting Tips

Before you begin shopping, it’s important to put together a budget for what you’re going to spend on the holidays. I’m not talking about just the gifts. I’m talking about gifts, food, travel expenses, wrapping supplies, decorations, family photo expenses, all of it! By having a budget in place, you don’t have to risk spending more money that you realized during this busy season. Follow these steps to get started.

There are two ways you can start creating your budget. You can start by knowing roughly how much you want to spend on the holidays in total, or you can start by listing out all the categories of expenses. I’ve found that listing out the categories works best for me. Start with the list that I made above. We’re going to go through one at a time.

A great idea is to start with the categories that you consider musts. For me, it’s gifts, food, decorations, and wrapping supplies in that order. My family is small and lives nearby, so we aren’t doing family photos this year and I don’t need to travel.

The first category for a lot of us will be gifts. Write out the names of everyone you need to purchase a gift for with an approximate amount for each person. The amount you are allotting to spend isn’t set in stone. You can adjust it later.

The next category I’ll do is food. I know that I’m hosting one Christmas meal but will be bringing a side dish or dessert to four other gatherings and going out to eat twice. To get specific, write out each occasion where you’ll spend money on food and how much you are willing to spend for each event.

Continue this process for each category until you have budgeted each category. When you are done, add the entire budget together. Is this more than you are willing or able to spend? If so, start reducing the budget in the categories that are the least of a priority. Examine the higher priority categories too to see if you can reduce your expected spending there too. You might be able to pull money from one of your higher priority categories to fund a lower priority category. This is your money, so you are in control of how you are going to spend it this year.

As you begin your shopping, keep in mind that you can adjust as you shop as long as you don’t completely ignore your budget and overspend. You might purchase a $50 gift for your mom, but you budgeted $60. Where can you move that $10 that you didn’t spend? You might need an extra $15 to buy a gift for your niece that you didn’t correctly allocate for. Keep an eye on your overall totals for each category to ensure you don’t go over budget.

Shopping sales will help you stick to your budget. Black Friday and Cyber Monday are popular days to find great deals for your holiday gift shopping. The closer you get to Christmas, the less sales you’ll find. Many stores run sales between the week of Christmas and New Year’s. If your gathering falls in that week, you could risk not shopping until after Christmas to snag a great deal on something you planned to buy anyway.

Here’s a quick review of our holiday budgeting tips:

• List all your expenses: Start by writing down everything you’ll spend money on, like gifts, food, and decorations.
• Prioritize: Decide which things are most important. Maybe gifts and food are your top priorities, but you can cut back on decorations.
• Make adjustments: If your total budget is too high, start reducing the amounts in less important categories. Move money around to make sure you can afford everything.
• Stick to your budget: Keep track of how much you spend in each category. If you find a great deal and save money in one category, use that extra money to cover something else.

Holiday Payment Options

With these helpful budgeting tips, you’re all set to start planning your holiday shopping! Have you thought about how you’ll pay for your holiday shopping? As we mentioned before, relying too much on credit cards can lead to high interest charges, especially if you’re already carrying a balance. This can put a lot of pressure on your finances. And unless you’ve saved up throughout the year, draining your savings isn’t the best option either. Here are a few other payment methods to consider to help manage your holiday spending wisely.

A low interest credit card can be a great option. We’ve already discussed the dangers of carrying a balance on a higher interest card for several months. However, if you have a great track record of making your payments on time, you know how to handle using a low interest credit card to cover your expenses. Plus, you can increase your credit score in the process.

A personal loan from Alltru comes with a predictable monthly payment. If you decide to pay for you holiday shopping over the next several months, a personal loan is easy to apply for. No collateral is required, so the approval process is fast. However, if you already have a large amount of debt, consider other ways to pay for your gifts as you shop.

Big name stores often offer deferred-interest financing. This means that you pay for your purchase over a period of time with no interest. If you plan to pay for your purchase during this period, this is a great option. However, if you neglect paying for your purchase during the interest-free period, you’ll have to pay high interest later.

A Holiday Savings account from Alltru helps you save throughout the year to pay for your purchases. Unfortunately, opening an account now won’t help you save for this holiday season, but you can prepare for next year. Gradually adding money to this account over the year will result in a stash of cash waiting to cover your holiday purchases in the fall.

Holiday Savings Account Benefits

Saving money throughout the year is easy with a Holiday Savings account. Whether you throw in money sporadically throughout the year or set up automatic transfers, your holiday money will be waiting in your account just in time for when you need it. Here are some benefits to opening a Holiday Savings account.

Purposefully save your money. Most would agree that saving some money from each paycheck is a good practice to follow. Saving is more difficult when you aren’t spending your money to prepare for an unknown future scenario. Instead of saving for an unknown future, you can save with a purpose – holiday shopping!

Keep your money in a designated account. The money in your Holiday Savings account is only to be used for your holiday shopping expenses. By keeping your holiday money in a separate account from the rest of your Savings and out of your Checking account, you put yourself at low risk for accidentally spending it throughout the year.

Develop healthy budgeting skills. You can fund your Holiday Savings account though automatic transfers or payroll deductions. By setting up regular, automatic deposits like these, you will become used to seeing a little less money in your Checking account to potentially spend when you receive a paycheck. Your new lifestyle of slightly-less money to spend immediately can be an easy adjustment. Plus, since you are saving a specific amount of money with regular deposits, you can easily calculate exactly how much money you will have saved when it’s time to start your holiday shopping.

Stay out of debt. If you save money each month in your Holiday Savings account to prepare for this expensive time of year, you can keep yourself out of debt. Whether credit card debt or a personal loan, both can be avoided if you plan with Holiday Savings. A deposit of $75 a month into your Holiday Savings account will total $750 when your money is automatically transferred into your Checking account in mid-October.

Perks of Early Holiday Shopping

If you decide to open a Holiday Savings account, you are on your way to developing budgeting skills and keeping your everyday life afloat. While a Holiday Savings account is a great way to pay for your holiday shopping, starting your shopping a little early can come with many benefits. Depending on your timing, your Holiday Savings money may not have transferred to your Checking account yet. Monitor your spending closely to make the most of your holiday budget this season. Check out these perks of shopping early.

First, you can find early sales. Many retailers start sales during this busy season well before Christmas. If you have a specific gift in mind and you find it on sale early in the season, go ahead and buy it! You’re saving money on something you would have paid full price for anyway! Online stores like Amazon can notify you if something in your cart goes on sale. Getting these items in your cart early and waiting gives you time to take advantage of sales you might have missed.

Shopping at outlet malls can save you hundreds. The St. Louis Premium Outlets in Chesterfield features over 100 stores including Adidas, American Eagle, Fossil, Marc Jacobs, and more! Outlet malls often mark down prices significantly through sales for in-person shoppers. By shopping early, you can enjoy the outdoor shopping experience before it gets too cold and save money in the process.

You can avoid delays in shipping. You’ve likely seen signs in your favorite stores for hiring seasonal employees. Retailers hire seasonal employees to keep up with the demand that the season brings so they don’t fall behind. The same is true for your shopping. Waiting until the busy shopping season can result in delays in your purchases being shipped or delivered to your home. By starting your shopping ahead of the rest, you are less likely to run into shipping delays on your orders.

Shopping early helps you spread out your spending, making the holiday season less financially stressful. Even if you don’t have a dedicated Holiday Savings account, the holidays can get expensive. Instead of putting all your purchases on a credit card in a single month or watching your debit card drain your account quickly, starting early allows you to spread out the costs over time. This way, you can manage your Checking account more comfortably without feeling the full impact all at once.

Maximize the benefits of an Alltru Signature Rewards Visa Credit Card. You can take advantage of perks like cashback and rewards points. By starting your shopping a little early, you can use your cashback funds and redeem your points for gift cards to use on your remaining purchases.

Underrated Money Tips

Americans spend a lot of money on the holidays. Even when we save around the year and budget well, we can still feel overwhelmed with the amount of shopping and planning there is to do. Here are some often forgotten but impactful money-saving tips for this time of year that can help ease the stress this season may bring.

Find a budgeting buddy. Following your budget can be stressful in the moment. By having a budget accountability partner, you can feel extra encouragement and support to prevent overspending. Finding someone that knows how to create and follow a budget for this time of year can help you do the same. Plus, when the season is over, you can celebrate sticking to your budgets together and not feel the dread or strain that results from overspending.

Plan for traveling expenses. With the increased demand in travel toward the end of the year, prices often increase for rental cars, flights, and hotels. Plan ahead and make your reservations early. This can help secure a lower price for your travel needs and ensure you have a room, car, or seat booked before everyone else starts trying to do the same. Don’t forget about the extra expenses of gas, parking fees, and paying a pet sitter.

Don’t pay for shipping. Many retailers offer free shipping with purchases over a certain dollar amount. Many also offer free shipping to the store too. Plus, Amazon Prime has free two-day shipping! When you created your holiday budget, shipping costs were probably not included. By using free shipping options, you don’t have to blow your budget because of this overlooked cost or reduce the amount you have to spend on gifts in order to follow your budget.

Handmade gifts for friends and family can save you the dread of finding the perfect gift in a store. If you’re good at crafting or cooking, a handmade gift can be sentimental to the receiver and a fun process for you to enjoy. If you need some inspiration, check out Pinterest for ideas.

Enjoy a night of holiday cheer at home. Hosting a group of friends at home for the holidays doesn’t have to be expensive or stressful. DIY décor can be festive and cost-effective. Buying food in bulk and preparing a meal yourself can be significantly cheaper than going out to eat or ordering catering for everyone. Having fun with friends is a great way to take a break from the chaos of shopping.

Holiday Activities for Every Budget

Speaking of holiday cheer, St. Louis is full of fun events to get you in the mood for the holidays. I love participating in these seasonal activities to relax and recharge from the stress of school deadlines, work goals, and crazy holiday shoppers. These experiences can also make thoughtful holiday gifts for those who value quality time and memorable moments.

Many locations around St. Louis light up the night with holiday light events, such as the St. Louis Zoo through their Wild Lights. In this experience, you’ll enjoy being in the zoo after normal operating hours to see select exhibits and special areas lit up for the holidays. Tickets for this kid-friendly night must be purchased in advance. The Brewery Lights at the Anheuser-Busch Brewery is a great option for adults 21 and older. With free beer under hundreds of lights, your experience will be a night to remember. When you visit, you can take a self-guided tour through the brewery or book a VIP firepit for your friends. Plus, don’t miss your chance to see the famous Budweiser Clydesdales.

St. Louis also has old and new niche events coming this year. Jingle in O’Fallon, Missouri is a new experience featuring an ice-skating trail, festive neighborhoods, local artisan shopping, sledding, festive snacks, and more. Alltru will also be there to help you enjoy the fun! Tickets are on sale now.

The Polar Express train ride at St. Louis Union Station takes passengers on a journey to the North Pole. To celebrate 20 years in St. Louis, riders will receive an anniversary mug to remember the experience. Special nights accommodate for those who need a sensory-friendly experience. Festive costumes and pajamas are encouraged! If you’re looking for a more active experience, check out the St. Charles Christmas Traditions. This festival features holiday singing, a scavenger hunt, and yuletide nostalgia for free! The shops along Main Street are also open for your holiday shopping too.

If you’d rather enjoy the holiday magic from home, we have several festive and cost-effective ideas to try. A holiday movie marathon is easy to set up for a relaxing evening. Many old and new Christmas classics are available through streaming services. For your competitive friends and family, try a holiday bake-off. Vote on your favorite holiday treats or set a timer and start baking in the same kitchen! A white elephant gift exchange is a fun and low-cost way to give presents and a memorable experience. Variations like “Rob Your Neighbor” and the “Left-Right Game” add to the fun.  

End-of-Year Financial Checkpoints

Whether you’re shopping, traveling, hosting, or enjoying the night out, the holiday season is busy. While we are all thinking about our current financial conditions and how those will affect our holiday experiences, it can be easy to forget about some essential other personal finance elements. Before the year wraps up, make sure to complete these essential tasks.

First, max out your retirement contributions. Most of us likely can’t contribute the maximum $23,000 in a year. However, the more money you put in your retirement fund before the end of the year, the less taxable income you have to report in the spring. 401(k) contributions are done through pre-tax income. By contributing more before the end of the year, you are saving more for your future and will pay less income tax too.

Next, maximize your HSA. Your Health Savings Account, or HSA, is also funded through pre-tax income. Putting more money into this Savings account will reduce your taxable income too. This money can be used for qualifying medical expenses. The yearly contribution limit is $4,150 for single coverage and $8,300 for family coverage this year. That’s significantly less than in the 401(k) limit.

The next task is to open a High Yield Online Savings account. Saving money in a High Yield Online Savings account is a great step to take before the new year so you can prepare yourself for meeting your financial goals next year. Whether you want to save for a new car, a downpayment on a house, or a honeymoon next year, get your account open now so you can start saving on January 1. Our High Yield Online Savings account has a competitive interest rate over 4x the national savings average too.

Update the beneficiaries on your accounts. It’s a good practice to check who you have listed an beneficiaries on your accounts at least once a year. Even if you keep the same beneficiaries year after year, check their contact information too. Confirm that their legal name, phone number, email, and mailing address didn’t change.

It’s also important to update your contact information with your financial institution every year to make sure it’s accurate. This includes your address, phone number, and email. Keeping this information current helps you stay informed about your accounts, receive important notices, and avoid any disruptions in communication.

Finally, adjust your tax withholdings. When you filed your taxes this year, did you owe or receive a refund for a significant amount of money? If so, you should modify your tax withholdings so you are closer to breaking even. This way, you can create a more manageable budget and lifestyle to avoid financial strain later on. On the other hand, if you received a substantial refund, tweak your withholdings so you can take home more money with each paycheck. You can then save that extra money in your High Yield Online Savings account and earn a yield on it to use for future needs.

End-of-Year Financial Review

The end of the year is a great time to review your personal finances to see how you should adjust your budget for 2025. If you need help creating a budget, check out these four budgeting methods. As you prepare to review your financial status this year and create a budget for next year, there are three main categories to examine.

The first area to examine is your spending. by taking a close look at your spending, you’ll know how you really spend your money and how you might not want to spend your money next year. You can easily check your account balance and transaction history through eStatements from online or mobile banking.

The next area to examine is your savings. Did you hit your savings goals this year? If you didn’t set a savings goal for this year, make a couple for next year! Automatically moving money into savings after each payday can help you prepare for future anticipated and unexpected life situations. Some great goals for staters include saving for a semester of college, building an emergency fund, and setting money aside for a vacation next summer.

The final area to examine is your credit. This includes checking your credit report and credit score. Major purchases or financial moves like buying a house or opening a credit card impact your credit score. If you’d like to increase your credit score, use your credit cards wisely and make all your credit card and loan payments on time.

End-of-Year Giving

As you plan your holidays and complete your end of year personal finance moves, you might have noticed that a lot of your decisions are based on yourself. This is normal. After all, this is your hard-earned money! The holidays are also an ideal time to consider giving back to your community.

Whether you give your time or resources, many charities and nonprofits organizations need support during the holiday season. GivingTuesday is a movement that encourages giving back to our community. While they operate year-round, they particularly emphasize generosity on the first Tuesday after Thanksgiving. This year, December 3 is the day to remember to give.

When you give financially on GivingTuesday, your charitable donation can be deducted from your taxes. Follow these steps to make your donation and receive your tax deduction.

First, find a tax-exempt donation. If you aren’t sure if the organization you have in mind is tax-exempt, check the IRS website. You can also contact the organization and ask. Since end of year giving is popular, they are ready to answer your questions.

When you make your donation, you can give through check, credit card, stock, and options. Your donation must be made by December 31 to list it as a tax deduction on your taxes for 2024. Make sure you keep your receipt from the charity to prove the amount of your donation. You’ll need this when you file your taxes.

In the spring, file your taxes! When you file, you’ll list your donation on the Schedule A form using the information from your donation receipt. Your donations will be claimed as an itemized deduction.

We Give Too

As a CDFI, or Community Development Financial Institution, we are passionate about community development and providing accessible banking products to those who otherwise might not have the opportunity.

We also volunteer each month in the St. Louis area. Our employees have eight hours of volunteer time each month, so they can give back too. This year, we spent the day with great non-profit organizations including St. Charles Habitat for Humanity ReStore, Urban League of Metropolitan St. Louis, KidSmart, St. Louis Area Foodbank, Humanitri, and other organizations.

Conclusion

As you prepare to start your holiday shopping this year, don’t forget these great tips from Alltru about how to manage your personal finances during the holidays. Whether you decide to splurge on shopping, experiences, or giving back this year, you’re making an impact on yourself, your friends, and your St. Louis community. When you are ready to take your next financial step to prepare for the holidays and beyond, we’re here to help.