Holidays & Financial Stress: How to Avoid the Spending Spiral

Woman enjoying holiday shopping and using credit card reader

It’s the most wonderful time of the year … but not necessarily the cheapest. Along with all the lights, decorating, holiday tunes, and tree trimmings comes gift buying, traveling, and a lot of celebrations. These extra costs add up fast, and can lead to financial stress for those of us on a budget.

Avoid the holiday spending spiral by making a plan and establishing firm boundaries so the holidays don’t become a financial burden that cause problems in the new year.

How to Avoid the Holiday Debt Trap

Getting into the holiday spirit doesn’t mean draining our bank accounts or racking up balances on high-interest credit cards that end up costing more than the original purchase. Still, the pressures of keeping up with the festivities while worrying about regular expenses like rent, electricity, and food can lead to enormous financial stress. Worse, retailers capitalize on this pressure by offering irresistible deals. Keep these tips in mind while planning for the holidays so you don’t get distracted from your budget and financial means.

Make a List
And check it often to make sure you’re sticking to it! It’s easy to get swept up in the holidays or fall to the pressures of gift-giving. Instead, create a list of everyone you’re buying for that includes exactly what you plan to get, and then do your best not to deviate. You might even ask ahead for gift ideas to avoid over-buying, and therefore overspending.

Establish a Budget
Whether by person or holiday spending as a whole, create a firm budget of how much you’re willing to spend this season. This can even include holiday-related costs like parties and dinners out. A budget will help you avoid the financial stress of overspending, and regularly tracking that budget will ensure you stay within your limits and avoid impulse buys. Be firm with others who may tempt you to overspend by communicating your financial limits, sticking to them, and even suggesting budget-friendly alternatives.

Compare Prices
Now that you have a budget, do your best to follow it. A great tip for enjoying the holidays within your budgetary demands is to shop sales and compare pricing across in-store and online options. These days, Black Friday sales start earlier and earlier, giving you more time to plan out your lists, buy some things early, and hold out for better deals later in the season – thereby stretching your budget across several weeks rather than having to spend a lot all at once. Knowing you’re getting a gift at a good price helps ease holiday financial stress and guilt.

Get Creative with Gifts
Not every present has to be the latest gaming system or an expensive kitchen appliance. Oftentimes, gifts from the heart are the best ones to receive. Using low-cost supplies, you can show off your artistic side by making photo albums or scrapbooks, knitting a quilt, painting a picture, or even cooking a favorite meal or treat.

Not the artistic type? Plan a special experience with a loved one that shows them how much you care. This could be a picnic at the park, a day hiking the trails, visiting a new museum, or any other outing that gives the gift of your time and undivided attention. No matter which creative gift-giving route you choose, it truly is “the thought that counts,” and the joy of showing our love enhances not only our own mental health but also that of our recipients.

Get Artsy with Wrapping
With holiday gifts comes the festive wrapping – and that can get expensive, especially for something that will be thrown away in the end. A good way to save money is to make your own wrapping paper. Check out video tutorials on how to create beautiful bows from ribbon, reuse festive ads or colorful paper, or even wrap with newspaper and decorate with greenery. After all, who says wrapping paper has to be traditional?

For extra savings, shop sales in the new year when holiday items are marked down and save rolls or bags for next year. You can also save up boxes throughout the year, and decorate them with fun artistic drawings that are perfect for gift-giving.

Travel Smart
Holiday traveling can be stressful, especially when you’re worried about overspending on tickets, gas, and/or hotels. Shop around and compare different sites for the best pricing, be flexible with travel dates, and utilize reward points whenever possible. If traveling isn’t in the budget, make a screen date! Connect with loved ones virtually – enjoying a meal together through Zoom or watching a holiday movie over FaceTime. That way, even if you can’t be there in person, you’re still part of the celebrations and enjoying valuable time with cherished friends and family

Consider Speaking with a Financial Expert
Financial planning can be confusing, especially if you’re not used to making and sticking to a budget. There are also online resources for tips, but when that’s not enough, financial planners can help you better understand budgets, savings plans, long-term planning, and more.

We’re Here to Help with Holiday Stress

If financial anxiety or holiday-related stress is feeling too much, SOL Mental Health is just a phone call away. We’re ready to make your holidays a time of true joy so you can focus on what matters most – making memories with loved ones, without going into debt. Reach out today to discuss your holiday or financial anxiety and see how we can help guide you through.

-----------------