The Financial Stress of the Holidays
Dr. William Beecroft
| 4 min read
Key Takeaways
- Nearly two thirds of U.S. adults report holiday related financial stress, which can trigger anxiety, relationship strain and health problems such as heart disease and poor sleep.
- Setting a realistic budget, limiting gift giving to close family and opting for handmade or experience based presents can ease the financial burden while preserving the spirit of the season.
- Prioritizing quality time through potlucks, games, outdoor activities or quiet self-care strengthens social connections, lowers health risks and offers a healthier alternative to costly material gifts.
Nearly two-thirds of American adults say they experience financial stress around the holidays.
This stress can make the entire season feel difficult, even painful. But by setting a budget, planning and prioritizing relationships and experiences, people can find both joy and mental wellness in the holidays. Here are some tips for adjusting expectations, talking to family and finding ways other than gifts to celebrate.
How financial stress affects mental health during the holidays and how to minimize it
Buying gifts, decorating and attending or hosting multiple parties can be extremely stressful financially and can often overshadow the feelings of joy and gratitude that make the holidays such a special time. Chronic stress can lead to chronic physical and mental health conditions, such as heart disease, anxiety and depression, weight gain and poor sleep.
For those feeling financial pressure around the holidays, it’s important to take a step back and consider the negative effects this added stress can create. Financial strain can cause anxiety, relationship conflict, debt or unhealthy coping mechanisms such as drinking alcohol. Individuals can look for the causes of financial stress and see where they can change their patterns or expectations.
Adjusting expectations and creating guidelines around holiday gift giving
While the holiday season can be a time of abundance and giving, it is OK for people to adjust their expectations. Creating new traditions not built around spending a lot of money or doing things people don’t want to do can relieve stress. This can be easier said than done, especially if a family tradition is lavish gifts or parties. Some loved ones may see physical gifts as an expression of love and care, but this isn’t always realistic or possible, especially for people experiencing financial stress. Setting expectations and guidelines around gift-giving can help take the pressure off holiday finances.
To get started, individuals can create a holiday budget and stick to it. They can prioritize who they will buy gifts for, such as immediate family and not friends or coworkers. It’s OK to say no to a Secret Santa or extended family gift exchange, but giving a handwritten card can be a way to share the holiday spirit for less money. When choosing gifts, consider practical presents, which can be both useful and thoughtful. Handmade gifts may be more precious than store-bought. Adults may consider sharing experiences rather than gifts.
While it may not be easy to talk about finances, others may also be experiencing the same stress and be grateful for the conversation. Having a support system can help people achieve their goals. Individuals looking to cut back on holiday spending may also want to say up front what they can and cannot do. If someone argues, individuals can calmly repeat their plan and then disengage in the conversation.
Prioritize quality time with friends and family
Nurturing relationships is one of the most important things people can do for their health. Strong social connection is linked to a lower risk of heart disease and stroke, while loneliness is associated with a higher risk of premature death. Prioritizing relationships rather than material goods can support physical and mental health in addition to reducing some financial pressure.
Here are some ideas for experiences rather than physical gifts:
- Cooking meals or baking holiday treats
- Having a holiday potluck
- Making crafts
- Playing board or card games
- Having a holiday movie night
- Sledding
- Ice skating
- Downhill or cross-country skiing
In the busyness of the holiday season, it can be difficult to prioritize self-care time. It’s important to consider scheduling quiet evenings or days to read a book, watch a holiday movie or simply relax.
Holidays can escalate underlying issues in families and individuals, so professional help can be lifesaving. The Substance Abuse and Mental Health Services Administration offers a holiday toolkit, while the National Alliance on Mental Illness (NAMI) offers a free, confidential help line at 1-800-950-NAMI, or through text at 62640. Blue Cross also offers comprehensive crisis care support resources in Michigan, which can be found at this link.
Dr. William Beecroft, MD, DLFAPA, is Medical Director of Behavioral Health at Blue Cross and Blue Shield of Michigan. For more health tips and information, visit AHealthierMichigan.org.
Image: Getty Images
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