It would be nice to wake up after the holiday season without dreading the receipt of our January credit card statements. Don't you wonder how your parents and grandparents paid for holiday gifts before credit cards? Although my parents were not rich, there were always presents at Christmas. How did they do it? Were they better at budgeting than us?

As I was pondering this notion, it came to me. Christmas clubs! My parents had a coupon book that was brought to the bank each week and they deposited $5 or $10 and that week's coupon got stamped. They would start the process in November and then in the beginning of the following November they would get a check from the bank for whatever was saved during that year. That is how my parents and grandparents paid for Christmas presents. They knew exactly how much money they had available for presents and they didn't have to worry about that dreaded January credit card statement.

It used to be that you could walk into a bank any time of the year and see advertisements to open up your Christmas club account. ?It's never to early to start thinking about the holidays? or ?It's never to late to open your Christmas club?. Why would banks stop advertising this service to people? They have not stopped offering it but they have stopped promoting it. Banks stopped promoting these accounts because they would rather see consumers use credit cards with which they make money rather than you use a savings account with which they pay you.

As a side note: in discussing this with a group of colleagues, we've come to the realization that the Christmas club was how the Friday after Thanksgiving became the biggest shopping day of the year. All the retailers were aware that people just received their Christmas club checks and they wanted to be sure it was spent in their stores.

There is a way to manage your money for the holiday season without going into debt and taking 6 months to pay it off. There is not much you could do for this season, however now is the perfect time to start thinking about next season. The first step is to determine the total amount of money you will spend on next season's holiday gifts. Then you should contact your local bank and inquire about a traditional Christmas club or similar account.

Seventy five percent of banks we contacted offer an automatic transfer holiday club account even though they don't advertise it. You choose the amount and the transfer schedule and your money is automatically taken out of your checking account and put into the club account. When the middle of October hits, the money is then transferred back into your checking account or you are mailed a check. Today's holiday club accounts are a modern twist on an old fashion way of saving. Next time you think your parents are behind the times in their thinking, remember that they understand the basic principal ?Cash is King?.

Opening up a holiday club account is the first step to financial freedom next season. You will have the cash ready for all your gifts because you took the effort and planned ahead. Next holiday season will be relaxing and joyful because you don't have to worry about that January credit card statement. Remember: Cash is King and credit cards are the number one budget killer!