Prices climbed to over 10 percent higher in November from a year earlier, putting an extra stress on the holidays, with their attendant shopping pressures and social obligations. With this kind of squeeze, how do we manage anxiety about money at a time we’re “supposed” to be in the mood for giving?
Of course, the holidays are notoriously stressful. But financial stressors can exacerbate this season like nothing else. According to psychiatry.org, a new poll from the American Psychiatric Association (APA) shows that while nearly a third of Americans report that they anticipate being more stressed out this holiday season than last year, they are less worried about spreading or contracting COVID at a festive gathering. This year, the main fear (50 percent) is about affording holiday gifts. Affording holiday meals (39 percent) was another key issue.
How we handle financial strain is vital to our well-being. According to an article in the New York Times, a study of older adults published in 2017 found that the way someone perceives and reacts to financial strain can have implications for their mental health. Those who were upset by their economic circumstances were more likely to have higher depression scores than those who were also under financial strain but who were not as bothered by it.
The good news is there is a lot we can do to modify how we perceive and handle financial anxiety. Here are six strategies for better ways to cope with money during the holiday maelstrom.
Tips for Coping with Financial Stress This Holiday Season
Be realistic
You can’t buy everything you or your near and dear want, so introduce some measure of fiscal sobriety. If you’re struggling to figure out a holiday budget, try researching costs, and investigating cheaper alternatives.
Try: Before you start to gather your numbers, take the time to think about what you can realistically afford this season and how much is enough. Figure out a number that works for you, and if it feels skimpy, get creative about ways you can augment your offerings. Massages, dog walks, homecooked meals, babysitting—all are gifts that go far as tokens of appreciation and love.
Practice self-reflection
Once you have a budget, discuss what you cherish most about the season with your loved ones and prioritize spending on those things.
Try: Add a few creative ideas that are low to no cost, such as taking a walk in fresh snow, going to the beach for sunrise, and handing out snack bars to the homeless.
Set boundaries
It’s essential to have healthy limits to protect your time, energy, mental health, physical health, home, finances and relationships. For example, feel free to politely decline a holiday invitation if you need some time alone, or talk with your family in advance about setting an affordable budget for gifts.
Try: Gift exchanges, like white elephant and secret Santa, are a tried-and-true way to cut gifting costs. You can also try thrifting your gifts by scoring treasures at consignment stores, thrift stores and Facebook marketplace or Craigslist.
Opt for experiences
Experiences tend to be more emotionally evocative and strong feelings bolster relationships. Several studies suggest that experiential gifts, such as going to a music concert or a sports game or a spa, have a much bigger impact and make people feel closer to the gifter.
Try: A day at a museum, getting a manicure with a dear friend, and trying a new restaurant for happy hour are all budget-friendly ways to splurge.
Switch to potlucks or progressive dinner parties
To curb costs without canceling, why not switch to a potluck? Hosting a potluck is much more fun than trying to do everything yourself anyway. It distributes the burden and lets everyone contribute, so the host can relax and enjoy the party as much as the guests.
Try: If you live close to the other guests, you can also throw a party crawl or progressive dinner party, having drinks and appetizers at one house, heartier fare such as stew at another house, and then dessert at a third venue.
Avoid peak travel costs
Being home for the holidays and then looking forward to a vacation during the depths of winter can make quieter holidays a treat and not a sacrifice.
Try: Since travel fares are steepest at Christmas and New Year’s, explore booking a January or February “holiday” trip, taking advantage of off-peak airfare.
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