The kids are in school, the weather has cooled down, and pumpkin spice is everywhere. That means the holidays are just around the corner! Before they get here, take some time to think about your finances.

Getting your overall finances in better shape now will make the holiday season go more smoothly when it arrives. Once you’ve made room in your budget by following these tips, it will be easier to make a strategy for holiday spending, and you’ll feel merrier about your money for months to come.

1. Consolidate debt.

If you have high-rate credit card debt or other loans from another financial institution, consolidating it with a lower-rate home equity loan or home equity line of credit (HELOC) can save you a bundle on interest. This can help clear some room in your budget for holiday shopping and other expenses. Michigan Schools and Government Credit Union offers home equity loans as low as 6.25% APR.* A home equity loan is issued for a specific amount; a HELOC is a line of credit, more like a credit card. It has an upper limit, but you can borrow any amount up to that limit. For instance, with a HELOC, you could consolidate high-interest credit cards from other financial institutions at a lower rate to reduce your payment. Freeing up these funds can help grow your savings for holiday expenses. See more about MSGCU home equity loans and HELOCs.

Not a homeowner? You can still save by consolidating debt and transferring balances to a lower-rate credit card. MSGCU offers a Titanium Visa credit card with a fixed, low 9.75% APR* and no balance transfer fee. You could also consolidate debt with an MSGCU personal loan; rates are as low as 9.50% APR.* Learn more and apply online for a personal loan.

2. Refinance your auto loan.

Just like consolidating credit card debt, refinancing a higher interest auto loan can lower your payment and give you more room in your budget. MSGCU’s Auto Rate Pledge promises a 0.25% rate discount* or our lowest rate, whichever saves you more. 

3. Get ahead of inflation.

With elevated inflation, stashing some savings in an investment earning a higher rate than inflation can help you outpace it. An MSGCU Certificate of Deposit (CD) offers guaranteed returns, making it a risk-free way to stay one step ahead of rising household costs. We are now offering a 9-month CD at a guaranteed rate of 4.85% APY*, with a minimum deposit of $500. Other CD terms are available as well, from 6 months to 5 years. See the details for all MSGCU CDs.

4. Meet with a team member at your bank or credit union.

Everyone’s life and finances are unique, so taking the time to sit down with a financial professional is a great way to learn strategies personalized for your situation. MSGCU thrives on providing personal guidance to our members. Getting to know your goals and helping you chart a path to reach them is our mission. With certified financial counselors available at each branch, MSGCU is ready to help you achieve financial success.

5. Make a holiday budget and track spending.

After you’ve gotten your financial ducks in a row, it’s almost time to shop. Before you start, determine an overall amount you can afford to spend for the holidays. If you plan to put some of your spending on credit cards, determine a limit on credit spending to avoid post-season regret. Once you’ve arrived at the total amount, make a list of your expenses: holiday meals, parties, gifts, etc. Then decide how much of the budget you’ll need for each item and track your holiday spending to stay on target.

Need help? The team at MSGCU is happy to sit down with you, go through your budget, and help you get off to a good start.

6. Start a holiday savings account for next year.

Once you’re done with this year’s shopping, think ahead to 2025. Some banks and credit unions (like MSGCU) offer special accounts designated for holiday savings.

“Our Holiday Club account allows members to make unlimited deposits throughout the year, and then on November 1, whatever sum they have accumulated will be deposited into their regular savings account so they can use it for holiday spending,” explains Anisa Picalli, Regional Director of MSGCU.

There are no monthly service fees or minimum balance requirements on an MSGCU Holiday Club account. Start saving now, even if it’s just a small amount each month, and you’ll make next year’s holiday that much easier. You can set up recurring automatic transfers into your holiday savings account, so you don’t even have to think about it.

Knowing you’ve put your finances in order can help you relax and enjoy the holidays. Start now and you’ll reap rewards well into the new year. If you need a hand creating your budget, contact MSGCU by phone, chat, or Video Banking, or stop in one of our 22 convenient branch offices.

Category: Finance