ShoreBank Blog

Deck the Halls With Savings

by Sarah on December 5th, 2008

Last holiday season, I was in graduate school during what the National Bureau of Economic Research recently declared the “start of the economic recession.” Yet despite my declining bank account balance and lack of income, I had one of the happiest holiday seasons ever. Why? Because I had devised a strategy to minimize my expenses while maximizing my gift giving and holiday festivities.

In this economy, it seems that almost everybody has these same goals. The trick is to find and practice the holiday thrift tips that best suit you. On that note, I interviewed ShoreBankers at our headquarters in the South Shore neighborhood of Chicago, and asked them what advice they would give shoppers hoping not to overstrain their holiday budgets. Here is what ShoreBankers recommend:

1.      Save throughout the year. For example, saving just $25/month in a high yield savings account at ShoreBank each month will build a $300 kitty for holiday shopping in December. In addition, you can buy an extra treat with the interest you earn.
2.      Stick to your holiday shopping budget. Several ShoreBankers use an Excel spreadsheet that lists who they plan on giving to this holiday season, the dollar amount they have allocated to that person’s gift, a list of budget appropriate gift options, and the final cost of the gift. This kind of tracking helps to avoid negative surprises on credit card bills in January.  The key is to be disciplined  $25 does not mean $26.
3.      Give your time. One ShoreBanker said, “Give time. It’s the most precious gift you can give.” Bake cookies. Make dinner. Give a month of backrubs. For many, the little (and least costly) things have the most meaning.
4.      Differentiate between what you “need” and what you “want.” You can then allocate your budget more effectively. If you have a soft spot for certain seasonal products (mine is for seasonal lattes), make a schedule for your treats and stick to it.
5.      Primarily use ATMs and debit cards, and account for each transaction. Multiple ShoreBankers said “If you only need $40 from the ATM, resist the temptation to take out $80.”  Use a debit card, write down every ATM transaction in your checkbook, and look at your account balance daily. It’s difficult, but even the attempt at completing this task can help you watch your budget.
6.      Comparative Shop. Something we all know we should do  but it is increasingly relevant as many stores are adding competitive match offers. Plus, you might be able to buy items in a store at online prices without paying for shipping.
7.      Discount and Coupon Shop. Some ShoreBankers recommended going to thrift stores, goodwill, or discount racks at brand stores to buy top tier brands at low prices. Search for coupons and “percent off days” for necessary items on your lists. Remember, if you can get a good price on a quality item, it’s still a quality item.
8.      Search for free seasonal activities. Most city halls have lists of free events. Who knows, you might even stumble upon a children’s choir performance!

I love the holidays and I hope one of these tips helps you to enjoy the season just a little more. As one ShoreBanker said, “We know the economy is bad. It is what it is. You just have to pay attention and use your money more wisely.”

Tags: community development, financial crisis, green banking, high yield savings, ShoreBank Direct, triple bottom line

This entry was posted on Friday, December 5th, 2008 and is filed under Banking Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.