Cash- not credit It is a foreign idea, but our family does not use credit cards. We spend based on what we have each month coming in. Even the stores that offer 15-20% off your purchase to open an account have very high interest rates if you are not able to pay your balance in full. I used to spend a lot more on credit cards than I would when I had cash or used my debit card.
Step2
Online savings account We have several small savings accounts with an online bank. It is very easy to directly transfer money from our checking account with our local bank to this online account. There is no limit to the amount of accounts you can open and they can be named whatever you are saving for.
Step3
Automatic withdrawals
The other option is to set up an automatic withdrawal with as little as $1. You can even select the day of the month for this to occur and the frequency. We currently have accounts set up for Christmas gifts for 2008, even though its only January.
Step4
Shop all year
I’m on the lookout for clearance racks and online specials throughout the year. I only buy the online specials that offer free shipping. It is also easy to find coupon codes to save even more money. It is important to keep an inventory of what you have purchased in a small notebook so you do not forget what you have purchased. I use an extra dresser to store these items.
Step5
Bottom line
Rather than going to the mall on Black Friday and running up your credit cards, it is so much better to save the money and then decide how much you can spend. Not how much you want to spend if you were wealthy, or how much your kids would like you to spend, but how much you can spend based on your income. I start planning for Christmas gift spending in January, saving each month and transferring the money back into my checking account by the middle to end of November, depending on when I will be doing my shopping. The stress of paying for Christmas until the next summer is not a factor in this plan.
Novice 
