Even though you may be enjoying a warm summer vacation, and counting down to December 25 is the furthest thing from your mind, it's a good idea to begin financial preparations for Christmas.

The average American family will spend about $750 on Christmas. Here's how we typically spend our money:

  • $548 on Gifts

  • $100 on Food/Candy

  • $51 on Decorations

  • $28 on Cards

  • $21 on Flowers

An interesting and overlooked expense is that 59 percent of shoppers purchase gifts averaging about $140 for themselves during the season. About two-thirds of Americans plan to pay for Christmas out of their present income, but the other one-third will incur debt for these expenses. It doesn't have to be this way.

If you begin now, you can be prepared for the expenses and avoid the stress and additional costs of Christmas financed with a credit card.

First, consider establishing a gift list now, a budget for the items you wish to purchase, and look for deals long before the shopping season begins. Another option is to establish a Christmas savings account.

Christmas Savings Account

A Christmas saving account is an account that your credit union or bank may offer to you. This will allow you to automatically withdraw money from your checking account each month to help you save money for Christmas. You can set up the account to have the amount that you will have accumulated mailed to your home or deposited into your checking account when you need it.

The biggest advantage to this account is that you never see the money, so you'll be less likely to spend it. You can have the money drafted out of your account the same day that it's deposited.

This account isn't used as an overdraft protection account, so the funds won't be used up that way. It will also enable you to avoid paying needless interest charges for retail credit accounts or on your credit card.

To save the average cost of $750, if you begin now, you'll need to deposit roughly $125 per month for the next six months into your Christmas account.

I recommend continuing this practice beyond the Christmas season so that the following year, you'll have double the amount, $1,500, in your account. You'll actually be prepared for Christmas in 2014, 2015, and 2016!

Many banks may offer an interestbearing savings account once you achieve the minimum amount needed in this account, so you won't only avoid going into debt, but you can earn interest while the money is accumulating throughout the year.

How God Used Christmas in My Life

The greatest period of financial stress that I've ever experienced was the year I didn't have any money set aside for Christmas. I wasn't a saver at that time, and the season seemed to catch me by surprise. I didn't want to go into debt, but I wanted to provide gifts to my family to express my love for them. I was embarrassed and hurt for my wife and children by my lack of planning.

The Lord mercifully provided for us that year despite my poor planning. But I also learned an important lesson to avoid this challenge in the future: Make a plan to save, and stick to it.

By using an automatic withdrawal plan into a savings account, I established a habit that continues to this day. Funds are automatically transferred from my paycheck into an account that isn't used for any purposes other than emergency needs, major purchases, and of course, Christmas. We're now able to experience the joy of celebrating our Savior's birth without the financial stress that it once brought.

So, enjoy your summer, but prepare for Christmas now. It shouldn't catch you by surprise that December 25 is less than six months away.

This article is courtesy of HomeLife Magazine.

Chuck Bentley has been a guest speaker addressing churches, business leaders, and radio listeners on biblical financial topics for over a decade. He serves as CEO of Crown Financial Ministries. Chuck and his wife, Ann, live near Knoxville and have four sons, a daughter-in-law, and three grandchildren.