When I was a kid, my bank had something called a “Christmas Club” program. It worked like this: I’d decide how much money I wanted to save for Christmas, say $100 (which felt like a lot when I was 10 years old). Then, I’d get a little booklet with 50 payment slips, each worth $2. Every week throughout the year, I’d pay off one of those slips. As a bonus, the bank would cover the last payment. While it wasn’t a major financial investment (just about a 2% return), it taught me some important lessons about saving and prepping for Christmas:
– Saving a little bit at a time throughout the year makes Christmas shopping a lot easier.
– Getting a bit of free money for saving isn’t too shabby either.
Nowadays, as an adult, I have a different approach to getting ready for Christmas shopping. I use various cashback, rewards, and other programs to fund my gifts. It requires some planning, but it’s definitely worth it.
**Rewards Cards:**
Credit card rewards programs are my top resource for Christmas shopping. I save up my cashback and bonus points all year and start redeeming them around October.
The best value comes from redeeming points for gift cards. Here’s why I love gift cards:
– You can often get gift cards for less than their face value. For example, Discover Card might let you get a $25 gift card for $20. This means you can get more value as opposed to redeeming for cash.
– Gift cards serve a dual purpose. They allow you to gift something special while also letting the recipient choose exactly what they want on a shopping spree.
This year, I’ve redeemed nearly $400 in gift cards for family and friends, and I’m still going! If you want to maximize your returns, check out my reviews on Chase Freedom, Fidelity Investments American Express, and American Express Blue Cash.
**MyPoints:**
Similar to rewards cards, I use MyPoints to rack up enough points to redeem about $50 in gift cards. The best part is that I spend almost nothing to get there—just clicking ads in emails.
**iStockphoto:**
For straight-up cash, I turn to my iStockphoto account. By digitally licensing my music and recordings, I earn an extra $100 to $200 a year.
**Airline Miles:**
Airline miles usually aren’t great for anything other than plane tickets, but they shouldn’t be ignored. Depending on how many miles you have, you can redeem them for small electronics, gift cards, and other stocking stuffers. My favorite option is magazine subscriptions; for a few thousand miles, you can get a popular magazine subscription that keeps giving all year long.
**Remember – The Key is to Start Early:**
Even though my current strategies yield more free stuff than my $2 Christmas Club bonus used to, the core idea remains the same:
– Start early
– Build up your rewards throughout the year
– Utilize multiple programs to maximize your redeeming potential
Good luck with your Christmas shopping, and Merry Christmas!
