Innovative banking products can help you control your holiday spending

In recent years, cutting-edge electronics have become an important part of the holiday spending spree. Whether it’s personalized music players, a tablet, the latest gaming system or the latest in high definition television, they are big ticket gifts that make a big impact. They are also big budget busters, especially when coupled with other often-overlooked holiday expenses like entertaining, decorations, extra groceries, postage fees and gift wrap. The result: most consumers continue paying the price tag for their holiday spending well after the gifts have been exchanged and desserts have been served.

This year, technology can play a new role in your holidays. While it can still be a great gift, it can also be a powerful tool in managing your finances—thanks in large part to innovations banks are undertaking to help you make confident financial choices, even as the holiday spirit takes hold.

Banking tools that can save you money

It’s hardly news that today’s consumer wants banking to be easy and straightforward, with instant access to everything from personal finance best practices to banking services. This is why banks such as KeyBank continue to create services that help customers to bank as they choose.

Here are examples of banking tools that can help you manage better manage your money this holiday season.

1. Mobile banking. With a smartphone,2 you can access your accounts with your mobile device any time you want, from wherever you are, to view balances and transactions, make payments to existing payees and transfer money between your KeyBank accounts. This is a great way to track your holiday spending, especially if you’re using your debit card to make purchases. According to the Daily Worth, 57 percent of shoppers shell out more cash then they plan, primarily because they use plastic instead of cash to make purchases. So check your account balances when you’re in the aisle mulling over a purchase. Seeing the balance and commitments in your account will help you make a better decision.

2. Account alerts. According to the National Retail Federation’s Holiday Consumer Spending Survey, the average person celebrating Christmas, Kwanzaa and/or Hanukkah will spend $804.42 in 2014—up nearly 5 percent from last year’s projection of $767.27. Many of these people will outspend their budget, and most of those who do so will do so unknowingly. Account alerts can let you know when you exceed your spending budget or when your accounts hit a certain level so that you know when to say “when” instead of continuing to shop. At the very least, you will know that you’re at your limit, which will make you reconsider the importance of purchases. Alerts can be sent via text message or email.

3. The KeyBank Hassle-Free Account might be worth considering if you prefer to bank online and want assurance your holiday purchases won’t result in unexpected overdrawn account fees.

Of course, technology is only a tool. It doesn’t change the fundamentals of money management—budgeting, saving, investing—it simply makes it easier to do so.

Busting your holiday spending budget is like the snowball effect. Once the floodgates are open, people tend to just spend more. In the past, all we had is a plan, hopefully, and our willpower, which is admittedly weak, to keep things under control. For most people, this hasn’t been enough. This year, with technology and the power now in our hand, we are equipped to stop the cycle.

Want to know more about these products? Stop by your local KeyBank branch today!

Thomas Holstead manages the Eastchester Branch. He can be reached at (914) 771-4782 or thomas_r_holstead@keybank.com.