The holiday season is over for most of us. But guaranteed a part of that season is going to stick with us for a long while – years even. How is that possible? Two words – credit cards. If you are one of many people who shopped for Christmas on credit, the statements you are about to receive month after month may be anything but spirit-filled.

The annual tradition of opening and contributing to a “Christmas Club” account is strong with my family, though it has stopped at my generation unfortunately. I actually wrote this article to make myself stop procrastinating and go out to open an account. Most banking establishments will offer a type of account where you deposit a small sum of money on a regular basis throughout the year. Most people will opt to deposit a set amount every payday and the bank will require that you abide by the payment schedule you set up for the account. There can be penalties if you do not make regular contributions or if you withdraw your money early. At some point before the holiday season start, depending on the policies of the financial institution, you will receive a check for the full amount of money deposited into your account.

These types of accounts do not earn large amounts of interest but the amount you save by making small deposits every week or so compared to the amount of credit card fees could be astronomical! Also, because you are obligated by the bank to pay fees or penalties for withdrawing money early or for not making regular deposits, you may feel more resigned to leaving the money alone and waiting for that nice check at the end of the year.

It is a good idea to check out the policies of several local banks to determine which one would be most compatible with your needs. If your paycheck is directed deposited into your bank account, you may be able to save a step and set up an allocation of funds directly into your Christmas Club account. You will have to speak with your human resource/payroll department to learn the specifics.

Those who do not want to “lock up” their money in a bank account still may consider using the same principal at home to save up for the holiday shopping season. Setting aside a small amount of money every week will help you to avoid costly credit card disasters during crunch time.

Holiday Shopping Done – Let the Budgeting Begin was created by and is property of American Consumer News.