Now that summer is waning and the school year is starting up, it’s time to look for that favorite seasonal drink … pumpkin spice!

Every year, seasonal marketing seems to appear earlier and earlier, starting with pumpkin spice in early August. Soon Halloween decorations will fill the aisles of your favorite stores, with Christmas décor following closely behind. Earlier marketing equates to more revenue — otherwise why would companies do this?

However, planning ahead — like the stores — has its benefits. Saving now for those extra holiday expenses with a sinking fund will help reduce financial stress and make the holidays more enjoyable. A sinking fund is a savings strategy where you plan and budget on a monthly basis for annual or semiannual expenses. 

Last year, Americans spent $13.1 billion ($200 to $400 per person depending on children’s ages) on Halloween and more than $1 trillion ($900 to $1,200 per person) on Christmas. As Christians, we know the reason for the season. Participating in Christmas services at your congregation, spending time with family and friends, and creating memories should be the focal points of the holidays, and last much longer than decorations and presents.

However, it makes financial sense to plan ahead and be prepared for extra holiday expenses like family outings, holiday donations and gifts for loved ones.

Try our Money Management workbook to help you create a sinking fund.

You can also make an appointment with one of our Financial Educators, who can help walk you through the budgeting process for holiday expenses, retirement or educational expenses.