Automated Budgeting with Reset: Your Guide to Holiday Spending

November 14, 2024

The holiday season often brings joy, celebration, and, for many, an increase in spending. When January arrives, though, the bills can pile up. To help you get a handle on your holiday spending, MSUFCU now offers an innovative new solution: the Reset VISA card.

According to a report by the National Retail Federation (NRF), holiday sales are expected to grow steadily in 2024, with shoppers embracing both online and in-store deals. However, increased spending can quickly snowball into financial stress if proper budgeting isn't in place.

When January rolls in, many Americans find themselves facing a "financial hangover" from overextending their wallets during the November and December months. As credit card statements or ‘Buy Now, Pay Later’ (BNPL) installment payments come due, it can feel overwhelming to regain financial stability after holiday splurging.

Whether you're trying to avoid the pitfalls of BNPL or juggling multiple credit card bills, the key to a financially healthy holiday season is thoughtful planning—and automated budgeting can be the tool that helps you achieve it. Fortunately, MSUFCU has partnered with Reset to make managing your finances easier than ever, helping members confidently navigate year-round spending– especially during the holidays.

The Financial Hangover: January’s Hidden Cost

The excitement of holiday shopping can often lead to unanticipated overspending. In fact, a consumer survey by LendingTree showed that 63% of those who took on holiday debt did not expect to do so. And of those who took on holiday debt, more than 1 in 3 (37%) expect to take five months or more to pay it off, with this figure jumping to 47% among Gen Xers.

This trend spans across generations. The most likely demographics to take on holiday debt are parents with kids younger than 18 (48%), millennials ages 26 to 41 (43%), and those making between $50,000 and $99,999 (41%). Many consumers are caught up in the shopping rush, only to be hit with regret when those bills start stacking up in January and it proves difficult to afford all expenses.

The problem often lies in overreliance on credit cards and (often predatory) loans or BNPL services to stretch budgets without a holistic focus on what’s truly affordable. While these options make spending feel more flexible, they can also delay the inevitable: a large amount of debt due after the holidays, with added interest or fees. This creates a "buy now, worry later" mentality that leads to financial stress down the road.

Why Budgeting Matters

The importance of budgeting during the holiday season cannot be overstated. Having a clear plan for your spending can help you avoid the “financial hangover” many experience in January. By creating and sticking to a budget, you can ensure you’re not only covering gifts, travel, and festivities but also keeping track of everyday expenses like rent, bills, and groceries.

Effective budgeting means being thoughtful about the limits on your holiday spending while planning for the future. Whether you’re shopping for family and friends or taking advantage of holiday deals for yourself, a proper budget ensures that your financial health remains intact.

How Reset Helps: Automated Budgeting & Daily Pay Access

Enter Reset, a free financial tool that makes holiday budgeting easier by giving you daily access to your income, while automating key aspects of managing your money.

One of the biggest challenges during the holidays is keeping track of what you’ve spent and what you can afford to spend moving forward. The Reset VISA card addresses this with a dynamic spending limit that updates daily based on your earned income, spending, and upcoming bills, ensuring that what you spend is always within your means.

Here’s how the Reset VISA card works:

• Daily Access to Pay: Instead of waiting for payday, Reset allows you to access your earned income daily without interest or fees. This provides a steady, consistent stream of funds to cover expenses without relying on traditional credit cards and other forms of debt. Reset supports income for W-2 and gig workers, U.S. military members, Social Security recipients, and more.

• Automated Budgeting: Reset automatically tracks your income and upcoming bills while also setting daily spending limits based on your earnings and financial obligations. The spending limit distills your budget into a single number without you having to do the math yourself. This makes it easier to manage holiday spending, knowing that as you use the Reset VISA card, a portion of your paycheck is already being saved, enabling you to confidently spend within your means. 

By providing daily access to funds and updating your spending limits dynamically, Reset eliminates the need to wait for payday to manage your holiday shopping, reducing reliance on debt while keeping your finances in check.

Stay Financially Healthy This Holiday Season

The holidays don’t have to lead to financial stress in the new year. With proper budgeting and a financial tool like Reset to automate and streamline the process, you can enjoy the season without the worry of a financial hangover.

Looking for holiday spending tips? Consult this helpful blog from Reset!

With automated budgeting and no-fee daily access to your earnings, Reset empowers you with financial flexibility while helping you build savings from each paycheck and avoid debt—so you can start 2025 in a better financial place.

Ready to simplify your finances and tackle your holiday spending?
Apply for the Reset VISA card today!

Tags: Budgeting, Tips and Tricks, Money Management

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