An Economic Stimulus Plan for the Holidays

Jon Gaskell — Wed, 14 May 2008 17:11:00 -0400

Oh, I know. The holidays? Who's thinking about the holidays... in May? The answer may not be you, but you should be. Here's why: The so-called holiday hangover. What's the holiday hangover? It's the sting that millions of Americans are still feeling, as they receive their credit card statements each month. And when do they spend the most? You guessed it: the holidays. And they spend even more when they charge their gifts instead of paying in cash, getting caught up in the holiday spirit.

It's a habit you want to definitely want to avoid. And with 116 million Economic Stimulus checks en route or already delivered, nipping the holiday hangover in the bud has never been easier.

More than $2.2 trillion dollars was put on U.S. credit cards last year in purchases and cash advances. The companies handling those transactions charged $18.1 billion in late fees to their customers. And that was before the present credit crunch. Recently, Washington Mutual told its customers that it was raising its rates by as much as 100%. Discover is raising its penalty rate to 31%. Bank of America has tripled its rates for some of its customers. Who is suffering? Often times it is folks who not only pay on time but have had no change in their credit history.

Just think. You put a couple thousand bucks on your plastic next December for gifts for family and friends. Then, you get stuck and can only make the minimum monthly payment. How long will it take to pay that off? About 15 years.

Now, take that Economic Stimulus check and put it to work for you over the next six months, while adding to it a little each month and there won't be any credit card bills come next January. No holiday hangover. No regret. Just a chance - and for many the first time ever - to completely enjoy the holidays while creating memories, not reminders in the form of bills.

So again, are you saving up for the holidays? Reversing the credit card mindset of "buy now, pay later" needs to be your first step and you can start with your Stimulus check, because the idea of saving up before buying something makes more sense than ever.

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A Smarter Choice for Stimulus Checks

Jon Gaskell — Mon, 05 May 2008 17:05:00 -0400

While the federal government is hoping some 116 million American families waste no time spending their rebates from the Economic Stimulus Package, SmartyPig is an alternative for consumers who wish to do their part to boost the economy while also getting more for their money... and reinforcing the benefits of good financial habits through disciplined savings.

For consumers, this means that a $1,200 rebate check put toward a SmartyPig savings goal for just 90 days would result in an additional $12 or so in interest (at our current APY). Add that to a 5% cash incentive boost from a top retailer (retailers and boosts vary), as well as three minimum monthly deposits of $25 (a user must have a goal he or she is actively saving for), and Mr. John Q. Taxpayer suddenly has more than $1,350 instead of $1,200 to help stimulate the economy.

Now, if Mr. or Mrs. Taxpayer has two children and wants to create a goal for next holiday season, his or her $1,800 rebate check put toward a SmartyPig savings goal for 7 months would result in an additional $43 or so in interest. Add that to a 5% cash incentive boost from a top retailer, as well as seven minimum monthly deposits of $25, and Mr. or Mrs. Taxpayer suddenly has $2,119 instead of $1,800 to help stimulate the economy and NO credit card debt come January.

SmartyPig was created to make saving money a fun and educational experience for individuals and families alike. If we have to save the economy, as well, so be it.

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An Economic Stimulus Plan for the Holidays

A Smarter Choice for Stimulus Checks