Why the holiday season triggers financial stress and how to deal with it

The holidays are a time for connection; an opportunity to spend quality time with family and friends. Whether you prefer to give or receive gifts, you’ve undoubtedly spent money this holiday season purchasing gifts for significant others, friends, co-workers, and other important people in your life to express appreciation for them. Giving a thoughtful gift is a unique reward in itself, but gifting culture can also be overwhelming and lead to feelings of stress and anxiety. 

There can be pressure to spend more than you should on gifts, and you might have feelings or guilt or regret after your purchases, which are intensified when funds are in short supply. During the holidays, feelings of financial stress are more common, but you don’t have to go through it alone. Text CONNECT to 741741 to talk to someone about how to deal with financial stress–anytime, free and confidential.

Why Financial Stress Peaks During the Holiday Season

Between Black Friday sales, end-of-year discounts, and the seemingly endless list of people you want to buy holiday gifts for or hosting holiday parties, the pressure to spend your hard-earned money increases. Emails and social media ads bombard you with sales, and stores have discount signs that draw you in. And after you make your purchase, you may be left with a small sting of regret, asking yourself, “Did I just spend too much?” 

Expectations from friends and family and the increase in events and gatherings can also contribute to increased financial stress during the holidays. When you’re invited to a holiday party, you may feel the pressure to bring a dish, dessert, or drinks, which can add up. Gift exchanges, white elephants, and secret santas also means spending more money. While these games typically have a low budget, they can become expensive if you’re involved in multiple gift exchanges.

How Financial Stress Shows Up Emotionally

With the conventional holiday idea that this is the most wonderful time of the year, you may feel a little bit like the Grinch for being moody when you end up spending too much, or because you still have a long list of loved ones to buy presents for. That feeling of being stretched too thin, both financially and emotionally, is not uncommon during a time of the year when expectations might exist  to show up for others and give–both your time and your money. 

When coupled with the expectations around the holidays, financial stress can affect you in unexpected ways. For example, you might be shorter with your significant other when discussing holiday to-dos, or you might stay up late worrying about money, affecting your sleep quality. Ultimately, your stress and anxiety can become heightened at a time of the year when things are supposed to be merry and bright.

How to Cope When Holiday Spending Feels Overwhelming

There are things you can do to self-regulate your emotions when feeling overwhelmed about spending. 

1. Check in with yourself: It’s important to identify and acknowledge your emotions and realize that any negative feelings are not permanent. 
2. Reframe the holidays: Explore what the holidays might look like if you put spending aside. Instead of buying expensive gifts, you can leverage your skills to make something special and unique. For example, you can draw a card, make a candle, or crochet your loved one’s favorite animal. 
3. Set boundaries: Limit your spending on last-minute holiday sales and impulse buys. The savings may be enticing, but could end up spending more than you save. 
4. Mitigate exposure: Find the sources that trigger you to spend, and stay away. If social media ads and influencers are causing you to spend, set a time limit on how long you spend the app, or delete it until the holidays are over. You can also unsubscribe from marketing emails or apply a filter that sends promotions away from your primary inbox. 
5. Stick to a budget: Set a budget and stick with it. Saving money can have a positive impact on your financial situation, and your mental health.
6. Be kind to yourself: You don’t have to spend money just because you’re expected to during the holiday season. There’s no shame in taking a step back from holiday spending to strengthen your finances. Give yourself a break, and make practical financial decisions that will improve your financial situation.

When The Financial Stress Feels Like Too Much

Financial stress can impact many people during the holidays. The expectation to spend and give your time, when you may not have much of either to spare, can put you in a tough spot. However, it’s okay to listen to your gut and set boundaries. If a gift exchange is stressing you out, kindly ask not to be a part of it. Or, if you’re expected to host an event during the holidays, discuss the possibility of sharing hosting duties or changing the venue.

It’s okay to ask for help and admit when you’re stretched thin. If you’re feeling holiday stress and need to speak to someone, we are always here for you. Text CONNECT to 741741 to speak to a volunteer Crisis Counselor anytime, free and confidential. You can also visit our financial stress & anxiety resources page to learn more about how to deal with financial stress.