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Financial Stress; How to not let it overtake the Holidays

  • Katz D.
  • 1 day ago
  • 4 min read

Coping strategies and planning for the season



Person in blue jacket gazes at festive, golden lights. Snowy Christmas trees and red ribbons create a warm, holiday ambiance.

With the Holiday season quickly approaching, many of us are already feeling the heaviness and tension as we look at our bank accounts and statements.


Many of us find lots of joy in giving our loved ones gifts around this time of year, traveling, or celebrating, but with a rise in unemployment rates, a loss of snap and other benefits, and additional state and federal financial factors affecting families and individuals all across the country, there’s been a lingering question: how can we celebrate this year?


We wanted to throw together a quick guide that might help you find your ground with not only managing your stress, but coming up with a game plan for how you can celebrate the season with financial difficulties and challenges. Remember, these tips are not financial advice. This article is to educate readers around mental health involving financial stress around the holidays and potential coping mechanisms and/or actions you could take to minimize or lessen the stress.


  1. Evaluate your situation

Two people work together reviewing an invoice. One uses a pen, and the other, a calculator. The focus is on hands and documents.

Some of us are in such a tight spot that celebrating with gifts or vacations might be out of the question. Maybe you’re not drowning financially, but instead, you’re floating by for now. The important thing is to start by reflecting on what’s coming in and out of your financial situation.


For many, this first step can be the scariest and most anxiety-producing. In fact, according to a national survey by Beyond Finance, more than half of the participants expressed that they don’t anticipate the safe-spending range of their holiday shopping with more saying that the pressure in our culture compels them to purchase gifts that are too expensive (PR Newswire, 2025).


Take some time to dedicate yourself to reviewing your situation in a calm, safe, and judgment-free environment so as to not become overwhelmed (or minimize it as much as possible).



  1. Set the boundary on your priorities

A glowing light bulb surrounded by six unlit bulbs on a dark surface, creating a contrast between light and shadow; no text visible.

We cannot pull blood from a stone. Giving a gift to a friend or family member can be important, but not if we’re at risk of losing our power or heat. Prioritizing which bills and needs should come before luxuries can seem challenging, but for those of us in a tight spot, it’s the only way to know what (or if) we can afford luxuries for our loved ones or ourselves.


Something that you can try is writing out all of your monthly bills and arranging them on a list of the most important verses the most luxurious. Once you’ve finalized your arranged list, start by reviewing your budget and see what you might have left over.


This doesn’t just apply to the holidays, too. The American Psychological Association (APA) has reported that 80% of Americans often experience stress due to financial concerns, and, of that, 50% is resulting from the ability to provide for their loved one’s fundamental necessities; not luxuries (Becker, 2025).



  1. Plan around and accept the budget

Watercolor palette and brush on wood with holiday cards. Cards feature trees, ornaments, wreaths, and say "merry Christmas" and "feliz natal."

For many of us, myself included, coming up with a plan with whatever budget that I have can be one of the most frustrating aspects of trying to reduce financial stress. It can cause sensations of guilt, shame, powerlessness, and general anxiety and depression. These feelings can grow to affect your physical health, as well.


Research shows that of Americans with stress and depression resulting from or heightened by financial stress, more than 40% often experience chronic pain and, of these people, more than 70% attribute their pain to their mental health (Talk Research, 2025).


Remember, if the budget says it won’t work, you can only do your best. Come up with a list of potential ways that you can celebrate, even if your budget is $0 this year. Having no budget doesn’t mean that you cannot enjoy the holidays - you’ll just have to enjoy them differently this year.



  1. Be clear about what matters to you

Two hands comfortingly hold another hand on a wooden table, conveying support and care. Soft lighting enhances warmth.

Regardless of how you like to spend your holidays, it’s important to be clear about how you CAN spend your holidays this year with others. If you can’t afford lavish or even ANY gifts this year, be open with your friends and family as soon as possible. It can be hard and feel awkward, but this will help give everyone clarity of what they can expect from you this season and prevent misunderstandings.


Some people may be upset, especially if traditions may be affected, but it’s important to remember that you’re doing your best. 


Keeping an emphasis on togetherness and quality time spent together with alternatives such as home-made gifts, low to no-cost activities, and group collaboration may help to lower the tension or conflict within your personal social circles. Showing your active planning around the situation and alternatives for bonding and personal connections can go a long way to expressing that you care despite the financial circumstances that you’re facing.



  1. As always, remember to put your safety and well-being first. 

Feet in festive socks rest by a crackling fire, next to a mug with a red knitted cover, creating a cozy, warm ambiance.

You’re not alone. Unfortunately, nearly 80% of Americans have experienced concerns around being able to afford the holiday season this year with more than 70% of participants in the survey admitting that they live paycheck to paycheck (VanMetre, 2025).


Remember to prioritize your health in safety in all areas this holiday season: mental, financial, and social. It’s okay to admit that you’re struggling. Most of us are, and there is no shame in admitting that. Support from a support system can often feel comforting and validating.



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References



Talk Research. (2025). Biggest barriers when seeking mental health care. Retrieved from https://talkerresearch.com/biggest-barriers-when-seeking-mental-health-care/ 




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