The holidays are riddled with excesses, and often that also means spending more than we do in a typical month. That can add to the stress of an already frenzied time, particularly when household budgets are already strained when everything seems to cost more. If you find yourself dipping into your savings – or saving less – the end of the year may be a good time to take a look at other investment options as we navigate through some economic uncertainty and apprehension.

One such option may be Treasury Inflation-Protected Securities (TIPS), which are bonds backed by the U.S. government and “indexed” to protect against inflation. “Indexed” means that income payments on the principal are tied to a price index – in the U.S., it’s tied to the consumer price index. That means a bond’s face value rises with inflation and they are less volatile than some other bonds. The interest rate is paid every six months.

Fidelity explains TIPS in greater detail in this article and what makes them less volatile during periods of inflation compared to other bonds. Some key takeaways include:

• Many other fixed-income investments lose value as inflation increases. TIPS are adjusted to reduce that risk.
• The inflation adjustment is made twice a year and is applied to the bond’s face value instead of the interest rate to protect the bond’s interest payment from inflation while also protecting the bond’s face value.
• TIPS are less useful when inflation is low. Issued with 5-, 10-, and 30-year maturities, they can be redeemed before or at their maturity date.
• You can purchase TIPS directly from the government through TreasuryDirect, or through a banker or broker.

You can also find additional “tips” by logging into your Fidelity account and requesting a Fidelity representative contact you.

It may be just what you need to let you enjoy the holidays and feel better about your financial future.