Why You Should Start Your Holiday Savings in July

It might feel wild to think about tinsel and tamales when we’re still sweating through triple digits, but hear us out. Planning ahead for the holidays (yes, in July!) is one of the smartest money moves you can make.

Between travel, gifts, decorations, potlucks and giving back, the holiday season can put a serious strain on your wallet, especially if you wait until November to start preparing. But you’ve got time. And even better news: with a few easy steps, you can turn your future stress into a festive win.

Here’s why July is the perfect time to start saving and how to make your holidays merry, bright and budget-friendly.

Why Start Saving Now?

Avoid Last-Minute Scrambling

When you plan early, you have more options. More time to price-compare, more breathing room to avoid racking up credit card debt, and more wiggle room in your monthly budget.

Try this: Start a dedicated holiday savings goal and aim to set aside a little each week. Even $20 weekly through December can add up to over $400.

Southern Arizona Tip:

Set a phone reminder that says, “Treat future-you to a stress-free December.” Even better? Tie it to the monsoon season: start saving with the rain, spend with the cheer.

Build a Realistic Budget

Ever wonder how you spent that much on stockings and secret Santa gifts? You’re not alone. According to the National Retail Federation, the average consumer spent over $2,000 in 2024. Many of us underestimate how expensive the holidays are until the receipts pile up.

Try this: List out your categories now: think gifts, food, travel, decorations, charitable giving and unexpected extras (like that last-minute white elephant party). Once you know your ideal budget, divide it by how many pay periods you have left until December. That’s your savings target.

Use Tools to Help You Stay on Track

Start with the Hughes Digital Banking App, which lets you track spending, set savings goals, monitor account balances, and even schedule automatic transfers into your holiday fund, all from your phone. It’s a simple way to keep your money moving in the right direction.

Need a personalized plan? Hughes members have access to MoneyCoach, a free financial wellness tool that offers a 3-minute holiday budget coach session and a quick financial wellness assessment to help you determine your current situation and your next steps.

It’s a great way to see the full picture, especially if holiday spending has snuck up on you in the past.

Plan Gifts Like a Pro

Getting your shopping strategy in order now can save you cash and time later.

Make a Master Gift List

Write down everyone you plan to give a gift to, no matter how small: family, coworkers, teachers, neighbors, even your mail carrier. Assign a dollar amount to each and brainstorm ideas early.

Try this: Use a note-taking app like Google Keep or Notion to track ideas as they come to you. It will keep you organized and help prevent impulse spending later.

Go Handmade or Group Gifts

Not everything has to come from a big-box store. Use your talents: bake, sew, design a digital photo album, or make spice blends with local flair. You can also go in on bigger gifts as a group with friends or family to reduce individual costs.

Shop Sales Now

July is full of summer clearance events, and major retailers often host “Christmas in July” sales. Keep an eye out for gift-worthy deals and stash them in a labeled bin until December.

Pro tip: Sign up for email alerts or download store apps for first dibs on markdowns.

Southern Arizona Flavor:

Support local! Tucson and the surrounding areas are full of artisan markets, craft fairs and small businesses with one-of-a-kind gifts. Planning now gives you time to browse, budget and shop local. Hughes Checking PLUS member? Check out the exclusive discounts from our local business partners!

Open a Holiday Savings Account

A dedicated savings account can do wonders for staying on track.

At Hughes Federal Credit Union, our Holiday Club Savings accounts are easy to open, have no monthly fees and can be set up to automatically transfer a set amount from your checking account every payday. It’s “set it and forget it” but better.

You can even nickname your account “Holiday Fun” or “December Fund” to keep your goal front and center.

Make Holiday Saving Fun

Saving doesn’t have to be boring. Here are a few ideas to gamify the process:

Reflect on What Matters

When the financial stress is off your shoulders, you have more time and energy for what really matters: time with loved ones, traditions, giving back, and maybe even a cup of champurrado under the lights at Winterhaven.

Holiday Spending Isn’t One-Size-Fits-All

Whether your holiday budget is $200 or $2,000, the goal is the same: being intentional and prepared. Starting in July gives you the space to create a season that aligns with your values, not just your receipts.

And if you're looking for help creating a plan? Our team at Hughes is here to help. From savings accounts to MoneyCoach, we offer tools that meet you where you are and help you finish the year strong.

Holiday Prep Checklist