With the holiday season in full swing, it appears minding one's budget can be as much of a challenge as watching your waistline. Despite the signs of an improving economy, according to a recent poll conducted by Ally Bank, Member FDIC, consumers have identified "managing spending" at the top of their list (and we checked it twice!) of what causes the most stress during the holiday season.
Of those surveyed, 34 percent expressed concerns about their holiday budget, with women showing slightly more concern over spending (37 percent) than men (32 percent) -- signaling an ongoing trend toward women taking the helm of the household budget. "Buying the right gift for everyone" and "juggling family and/or social obligations" came in at second and third place, respectively.
One thing is for sure: Nobody wants to ring in 2014 with less money than anticipated because they spent more than planned. Although technology has made shopping much easier with apps for everything from managing coupons to tracking shipments, it might also make it easier to overspend. You can start off by making that technology work in your favor by downloading a mobile banking app (if your bank offers one) to monitor spending this year and help you stay on track with your spending. If you are not familiar with how they work, you can see some of the features of Ally Mobile Banking as an example.
But the real key to keeping your expenses in line during the season is to establish savings goals and a budget for your holiday-related spending - from gifts, decorations and entertainment, as well as donations and tips for service providers.
While it may be too late in the game to start saving for this season, consumers should be thinking of their financial goals for 2014 if they haven't already. When it comes to saving money, every little bit counts toward fiscal fitness, and the first step would be to establish a goal for next year and set up a savings plan to get there. A few things to keep in mind when shopping for a savings account to help grow your money faster include:
No monthly maintenance fees - Some banks charge a monthly fee if a deposit doesn't come directly from an employer or will charge a fee if a balance dips too low, which can put a dent in savings. Find a bank that doesn't charge monthly maintenance fees or require you to carry a minimum balance on your account in order to waive those fees.
Competitive and consistent interest rates - A little advance research will help identify best options for helping to grow your savings. Look for banks that offer consistent, competitive rates as opposed to those that tempt new customers with promotional rates and one-time offers. An added bonus is finding a bank that compounds interest daily, as opposed to monthly, quarterly, or even annually.
Convenience - Rapidly becoming a "must have," mobile banking enables consumers to easily access their account information, deposit checks, transfer money and locate nearby ATMs to save paying out-of-network fees. Also growing in popularity is the ability to create custom accounts for specific savings goals, such as "St. Nick's Fund" or "2014 Holidays." This feature allows one to track their progress toward a specific goal.
Whatever causes you stress this holiday season -- whether it is juggling family and social obligations, finding the right gift for everyone or planning travel -- a sure way to enjoy the holidays more next year is to establish a savings plan for managing spending in 2014, which will be here before you know it.