How to Get Your Loved Ones to Save Money This Holiday Season with a Giving Pact

The Culture of Money believes that not only should you work on your own financial well-being, but you should also help the people you care about by participating in the Give Savings campaign. This holiday season, show your loved ones how much you care by contributing to their savings.

The #GiveSavings campaign works to encourage people each year to save money, starting on Black Friday. By modeling the act of generosity and showing that it is possible to save money, this campaign sets an important example for those who may be struggling with overspending during the holidays.

African American and Latino people tend to spend much more money on presents during Christmas time.

One of the biggest challenges when it comes to saving money during the holidays is the tendency for African American and Latino people to overspend on Christmas gifts. Whether we are buying things for our loved ones, splurging on ourselves, or just paying too much at the grocery store, there always seems to be an excuse to spend more than we need to during the holidays.

African-American and Hispanic consumers spend more during the holidays than at any other time of the year. On average African-Americans spend 15 percent more while Hispanics tend to spend 13 percent. This is really shocking, considering how those populations tend to be more financially vulnerable than other groups.

To help combat this tendency toward overspending, the #GiveSavings campaign encourages people to gift their friends and family contributions to high-yield savings accounts instead of physical gifts. By funding someone's savings account as a holiday present, you are showing them that you care about their financial future and want to assist them in reaching their goals.

A Giving Pact is the Most Effective Way To Save Money

One way to challenge this is to limit the amount of money spent on Christmas gifts with a giving pact. A giving pact is a voluntary agreement with family and friends to spend less on gifts to save more. There are different gift-pacts to choose from, including no gifts, limited gifts, or normal gift-giving just like in the past. You and your friends or family can choose a spending limit that works for everyone, and agree to abide by it throughout the holiday season. You can download a letter here that will help introduce the idea of creating a giving pact to your group.

Don't Let Over-Spending Cause You Stress, Create Wealth Instead

While the #GiveSavings Campaign can be difficult at first, it is an important and impactful way to help your loved ones financially. By encouraging others to save money during this time of year, we can reduce the stress of overspending and help people build healthy financial habits for years to come. So if you care about your loved ones, consider joining The Culture of Money Give Savings Campaign this holiday season!

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