5 Strategies to Manage your Holiday Financial Stress

It can get expensive around the holidays. The cost of parties, gatherings, travelling and gift buying can drain your wallet and make the holiday season a major trigger for financial stress. 

Even without the added expenses of the holidays, 42% of Canadians say financial worries are their biggest source of personal stress. We’re sharing some tips to help you better manage your finances so that you don’t  dread your January credit card statement and to help you to focus on being fully present with your friends and family. 

1. Set a budget

An annual budget with a dedicated portion for the holidays will encourage you to save over time in small increments, resulting in fewer end-of-year problems. By also determining holiday financial priorities, you’ll be able to plan for everything from the family dinner to your great-nephew’s gift. Don’t have a budget yet this year? No worries! Outline expenses and what you can spend during the holiday season to create a holiday-specific budget. A financial advisor may be able to assist you in creating a strict budget to help you navigate tough times. A plan will allow you to feel more in control of the situation while alleviating your mental burden.

2. Identify how you react to financial stress

Everyone reacts differently to financial stress. For example, stress may even lead to spending more as a way to alleviate it. While others may even hide their spending habits or distance themselves from their friends and family. You can begin to address these behaviours that will burden your mental health once you identify how you react to financial stress. Keep a diary of your moods and subsequent actions on a day-to-day basis to identify trends and consider working with a financial coach or a therapist to determine your next steps.

3. Stay active!

Financial stress can leave you feeling depressed and lethargic. In fact, if you stop exercising and being active, you’ll produce less endorphins (feel-good hormones), which could make you feel worse. In addition to reducing stress hormones such as cortisol and adrenaline in the body, exercising helps you feel calmer. Take part in aerobic activities every day for at least 30 minutes.

4. Compile Your Holiday Shopping Lists

Before you shop, make a plan of where you’ll be shopping and where you’ll be going to maximize efficiency and minimize traffic stress. Separate your gift budget into sections for family gifts and for friend gifts, and prioritize accordingly. Don’t go beyond your budget or your list when you make your way to each store, even if it’s tempting to get that trendy gift you saw on Instagram.

5. Get help if you need it

Financial stress can be overwhelming and difficult to manage alone.  If your stress has gotten to a point where it is affecting your day-to-day life, consider working with a therapist or other health provider to determine the best strategies for you.

If you are overburdened by financial stress, speak to our Care Team about the best treatment options and support for you.