2026 is the year to add a 'party fund' to your budget — start with these 3 resources

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.

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.

2. 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.

3. 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.

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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