Parties and events are some of the most enjoyable ways to connect with loved ones to celebrate the holidays and mark special occasions — whether it’s a small family dinner or a fully catered, Instagram-worthy soiree. But while the memories are priceless, party costs can quickly add up, especially if you’re the one hosting.
A 2025 KPMG Consumer Pulse Survey found that, on average, consumers plan to spend approximately $231 per event they host, and nearly a third (31%) spend anywhere from $201 to $500. Whether you’re hosting for the holidays, or planning a party for 2026, it’s smart to add a dedicated party fund to your budget so nothing’s a surprise. Here’s how to do it.
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How to create and maximize your party fund
Your party fund will ideally be your sinking fund for any parties or events you’re hosting, making the beginning of a new year the perfect time to set this up. Here are three steps to follow, along with tools that help you along the way.
1. Set a spending limit per event
How much will it cost to host a New Year’s Eve dinner for four? What about a baby shower for your best friend in a few months? The first step in creating a party fund is setting a spending limit for each event you know you’re hosting in the upcoming months. This will give you a total ballpark figure to aim for when saving up cash in your party fund. Once having your goal, you can figure out how much you want to contribute and how often, whether it’s weekly, bi-weekly with your paycheck or at the end of every month.
If you’re only hosting holiday parties that fall at the end of the year, this gives you a long runway to squirrel away consistent amounts of cash. But if you have birthdays, graduation celebrations and other parties scattered throughout, you’ll want to save larger amounts of money each month to fully fund them.
With an app like Monarch, you can create a “party fund” goal and assign a savings account to it so you can track your progress in real time. Goodbudget is another app that uses the envelope budgeting method; with this method, you can assign each event an envelope where you save up and spend from.
The best part about using a budgeting app for your party fund is that you can see how your savings goal fits into your broader budget and expenses.
Monarch Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
Free trial
7-day free trial is available before subscribing
Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
Security features
Utilizes industry-leading security practices, according to Monarch’s website
ProsEasy-to-navigate money-tracking dashboard, including a net-worth trackerEasily syncs to your bank, credit cards and other financial accountsUsers can add collaborators for freeSeven-day free trialCons Subscription is pricier than competitorsRecommendations in the “advice” tab are genericGoodbudgetCost
Free for 20 total envelopes; $10/month (or $80/year) for unlimited envelopes
Standout features
Allows couples to use the envelope system digitally for budgeting, and allows couples to track their debt
Categorizes your expenses
Yes, but users must manually input transactions since the app does not sync to your bank account
Links to accounts
No, users must manually input purchases and transactions
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android) and as a version for laptops
Security features
Information is using bank-grade 256-bit SSL
ProsFree version of the app availableAbility to share budget and spending with your partnerDigital envelopes help couples save for big goals that matter to themMoney management courses and resources availableConsTransactions must be entered manually2. Keep your party funds in a high-yield savings account
One of the best places to keep your savings, no matter what goal you’re setting aside cash for, is in a high-yield savings account. These accounts pay you above-average interest, so your money earns money all the while remaining accessible.
Compare high-yield savings account rates
Plus, many high-yield savings accounts feature “buckets,” which let you divide up your savings into different goals: party fund, future home, etc. The Capital One 360 Performance Savings and Ally Bank Online Savings are two options that offer these built-in bucket systems, or sub-accounts for different goals, making it easy to stay organized.
Capital One 360 Performance Savings™
Capital One Bank is a Member FDIC.
Annual Percentage Yield (APY)Minimum balanceMonthly feeMaximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions feeOverdraft feeOffer checking account?Offer ATM card?
Yes, if have a Capital One checking account
ProsStrong APYNo minimum balance or depositNo monthly feesOption to add a checking account with ATM accessHas physical branch locations, plus Capital One® CafésHas a top-rated mobile appOffers mobile check depositUsers can take advantage of free credit monitoring serviceConsHigher APYs offered elsewhere Ally Bank Savings Account
Ally Bank is a Member FDIC.
Annual Percentage Yield (APY)Minimum balanceMonthly feeMaximum transactions
10 withdrawals or transfers per statement cycle
Excessive transactions feeOverdraft feeOffer checking account?Offer ATM card?
Yes, if have an Ally checking account
ProsStrong APYNo minimum balance or depositNo monthly feesOption to add a checking account with ATM accessConsHigher APYs offered elsewhere$10 excessive transactions fee3. Earn while you spend with cash-back platforms
Cash-back apps and websites like Ibotta and Rakuten let you get a little money back on purchases you’d make for your party anyway. These platforms work by giving you a percentage of your spending back, either as cash or points, when you make a purchase from brands and retailers in their network like Target or Costco. Sometimes, you’ll even get a coupon code you can automatically apply to make purchases at a discounted price.
Cash-back platforms may not directly help you finance a party fund, but you can take the cash back you earn (on spending you’d do anyways) and save for your next hosting.
IbottaCostCash backCoupon codesPrice comparisonMobile appWorks with in-store purchasesWelcome bonusHow to redeem your savings
Redeem cash back once you reach $20 as a deposit into your bank account, PayPal account or for gift cards.
ProsOffers at over 300 participating retailersYou can activate savings, then shop and save on in-store purchasesConsYou can only redeem cash back after you reach $20The browser extension is only available on Google ChromeAfter 180 days without redeeming an offer, your account is charged $3.99 for every 30 days of inactivityRakuten
Information about Rakuten has been collected independently by CNBC Select and has not been reviewed or provided by the company prior to publication.
CostCash backCoupon codesMobile appWorks with in-store purchasesWelcome bonus
New users can earn a $10 bonus after spending $25 on purchases made in your first 90 days. You also may be able to earn an even larger bonus if you’re referred by a friend.
How to redeem your savings
Rewards are issued quarterly.
ProsYou can earn American Express Membership Rewards Points or Bilt Rewards instead of cash backNew users can earn a welcome bonus or referral bonusOffers at over 3,500 online storesYou can activate savings, then shop and save on in-store purchasesConsCash back is awarded quarterlyTypically not valid with Amazon purchasesWhy everyone should have a dedicated party fund
We’ve mostly talked about dedicated party funds for those hosting, but really anyone can benefit from having a savings reserved for events throughout the year. Here are three reasons why.
You avoid overspending
Whether hosting a party or attending one, it’s easy to spend more than you’d like when you’re in the moment. But if you plan for the event earlier on with a dedicated party fund, you’re allocating money ahead of time and this helps you stay within your budget.
You protect your future savings
Planning ahead ensures that celebrations don’t derail other financial goals. Without a party fund, you’re left pulling money from your regular checking or savings accounts — or charging expenses to a credit card that you can’t pay off immediately. Adding a party fund to your budget allows you to still save for multiple goals simultaneously without jeopardizing other savings plans.
You’ll be ready for last-minute hosting
Hosting an event may not be on your radar now, but one could pop up last minute. A party fund can cover these unexpected expenses without forcing you to make rushed financial decisions. Focus on pulling the event together rather than scrambling to cover costs.
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