Even before Christmas has said Hello, it’s saying ‘Buy Buy” – Robert Paul
Jay Ledesma
As the song goes, Christmas is the most wonderful time of the year. But it can be the most expensive too, especially for us, Filipinos, who have the longest Christmas celebration in the world. We want to gift our loved ones with meaningful presents, host gatherings for family and friends or go on a grand holiday vacation. To do all these, requires money.
First day of the “ber” months, many of our “kababayans” are starting to feel the financial pressure of holiday spending, which can really dry up our bank account. However, by planning and saving ahead, we can have a worry-free and enjoyable holiday celebration.
During my last vacation in the US, I heard about a program that some of the more proactive companies have put back in place to attract and retain talents in their payroll: the Christmas Savings Program. Also called “Holiday Savings Club”, the program aims to help employees save for their major holiday spendings by automatically deducting a specific amount from payroll and returning it to employees just before the big crunch of the holidays. Now, the real benefit of the programs is the double-boost from tax and interest. It’s a tax relief for the employees as payments into the savings program are deducted pre-tax. Moreover, the cash returned to the employee earns interest based on competitive market rates.
I am not sure if this concept is already being done in some of our local companies. But I believe this is something that employers looking for a different way to help their employees can seriously look into. It can be a win-win for both parties.
It helps the employees build their savings, where the funds are set aside passively, rather than requiring discipline on behalf of the saver. As salaries are often immediately spent equally on needs and wants, savings is always missed out. With the auto-deduct feature of the program, employees are given platform to do forced-savings. This practice will eventually grow in them, creating a “save and invest” mindset. A financially stable employee can be expected to be more productive and engaged.
Employees can avoid debt and predatory lending. A typical employee is estimated to spend an average of additional P3000-P5000 during the holidays. This is fine, if it is budgeted. But for most Filipinos, this will already require them to go into loans or credit card debts. Considering that most will only pay the minimum amount come due date, the interest rates will cost them more than their loaned amount.
The work efficiency of an indebted employee may be affected. When an employee is stressed about how to pay debts, their productivity drops and work disposition changes negatively. Having a Christmas Savings Plan is a practical way to avoid employees struggle with holiday spends, giving them focus and peace of mind.
Having a reserved fund for the holiday spendings will help employees avoid dipping into their emergency or retirements funds. To spend on their holiday merriments without a set aside Christmas budget, some employees carve out a portion from their emergency or retirement funds. This may be an alternative, for as long as the fund is immediately replenished, which rarely happens. This, often, results to employees not having the funds during real emergency or not having enough retirement funds when it’s time to hang their gloves. With financial security, an employee can work with more ease and concentration, knowing that they are prepared for both the planned and unexpected expenses that the holidays brings.
While its real intent is to ease the holiday spendings of employees, the program offers a flexible and dynamic scheme. They can be ‘rolled over’ in case an employee doesn’t spend some or all of the funds they have saved thru the program. With competitive interest rates, tax benefits, and opt-out convenience, this can be used to reach longer-term savings goals like house purchase or dream vacations. Employees will be drawn to join and stay longer in companies that care about their complete welfare.
The Christmas Savings Program can be a serious game-changer for both the employers and the employees. While gym memberships and work-from-home arrangements rank as top “nice to have” by employees, having a steady and reliable “windfall”, paid out during the most expensive time of the year, can be a real welcome treat for both job applicants and current employees.
While the true essence of Christmas does not come from the gifts, the money, or the food we give or receive, still, we cannot deny that these are integral parts of our Christmas celebration. Our employees will continue to splurge during the holiday season. So if we cannot stop them, perhaps we can just find a way to help our employees enjoy the season without the stress and the lingering worry of how to pay off holiday debts in the coming months. The Christmas Savings Program may be it!
As we begin a new year, it is the best time to launch this program for Christmas 2025. Meantime, an advance Season’s Greetings to everyone!
