Citizens Bank offers money-saving tips for holidays

Citizens Bank is offering holiday spending and budgeting tips for consumers during this busy shopping season. These guidelines can help consumers manage their money and prevent the accumulation of budget-busting household debt.

“The best way to approach the holidays is by planning ahead,” said Jeff Pearlberg, retail director for Greater Philadelphia, Citizens Bank. “Planning can prevent overspending and unplanned debt. It is easy to break the family budget by getting swept up in the excitement of the holiday season. Developing a plan and a budget will pay dividends all year long, not just during the holidays.”

To help consumers manage their money, Citizens Bank suggests the following seven guidelines:

• Make a list and check it twice

Make a list of all of the people to buy gifts for, with an estimated spending budget for each person. Total the amount to see if there is a realistic spending plan, or if the list needs to be revised and re-evaluated. Remember travel and shipping expenses, and make sure to add in a little bit of extra money for unforeseen or surprise costs.

• Open a holiday spending account

Opening a separate, no-fee checking account for the sole purpose of holiday spending is a good strategy. While it may be a little too late for this holiday season, it’s the perfect time to be ready for next year. Deposit into the account only what the budget allows, and be sure to use that debit card when holiday shopping to ensure spending only what has been set aside for the holidays. This will help avoid placing large purchases on credit cards to pay off later.

• Make a plan to pay off holiday spending debt

Many people use credit cards for holiday spending to earn cash back or rewards points, but that really only makes sense if purchases are paid off quickly. To pay for holiday costs with a credit card (e.g. gifts or travel), set a plan to pay off debt by a specific date, so there isn't a holiday debt hangover for months on end.

• Be wary of store credit card deals

Many stores will give a 10 to 20 percent discount on your purchase if you open a card with them. This is fine, with strong credit and good discipline about paying it off. However, spenders must remember to pay off that debt before the end of the grace period or they could end up paying back that discount and then some.

Also, store credit cards typically carry much higher interest rates than bank credit cards, so shop around and find a credit card that provides a low introductory rate. A low rate card will enable shoppers to pay down more of the balance instead of the interest.

• Research store layaway options

Many major retailers, such as Walmart, Best Buy, and Toys R Us offer store layaway. For big-ticket items, consider buying them now on layaway. Reserve the item early and make payments over time leading up to the holiday season. Once the item is paid off, it can be picked up. Stores typically charge $5 to 10 to hold and reserve the item, but this can save a significant amount of money compared to using a credit card and being charged interest.

• Follow favorite retailers on social media

Most retailers are active on social media and give their followers exclusive deals and advance notice of sales. Be one of the first to know about sales, and make sure not to miss any deals at favorite stores.

• Start shopping now

Getting a jump start on holiday shopping now will help avoid product markups later in the holiday season. Buying early also helps spread out spending to avoid multiple expenses at once, and gives plenty of time to wait for the perfect deal.

For more information, call the 24/7 customer contact center at 1-800-922-9999 or go to www.citizensbank.com.