3 Reasons You’re More Worried About Money This Holiday Season
Written by
Martin Dasko
Edited by
Amen Oyiboke
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According to Thrivent’s 2024 Holiday Spending Survey, almost half of Americans (46%) live paycheck-to-paycheck with very little disposable income to spend on the holidays this year. The survey also found that in the current economic climate, 31% of respondents plan to purchase fewer gifts overall during the holiday season.
The general consensus is that Americans are worried about holiday expenses this year, and financial concerns in 2024 could be more stressful than in previous years.
Here are three possible reasons you’re more worried about money this holiday season and some tips for overcoming this stress.
Expectations for the Holiday Season Have Increased
“In recent years, budgets have become tighter and consumer goods prices have risen — so have holiday expectations,” said Erika Kullberg, a personal finance expert and founder of Erika.com. “It can be hard to see all the gift guides and purchases on social media for gifts you would love to give but can’t afford.”
With social media’s influence on our daily lives, many consumers may be frustrated by the number of gift options they can’t afford, given their bank account. These unrealistic expectations set by social media and media, in general, could easily cause one to feel overwhelmed and stressed about their finances.
How can you overcome this stress?
“One way to overcome holiday spending stress is to have open and honest conversations with your loved ones about your gift, travel, and entertainment budgets for the holiday season,” noted Kullberg. “Chances are they feel the same pressure and would be relieved to set clear spending boundaries and expectations. Being open with your friends and family about what you’re going to spend can take a lot of pressure off their plates as well.”
You will all feel better if you lift some of that pressure off yourselves and them regarding holiday expectations. You don’t have to get into credit card debt to pay for gifts or events that are way out of your budget.
Kullberg added, “Spend some time focusing on what matters this season and change your perspective. Hopefully, that will help those feelings of guilt disappear and make it easier to enjoy festivities without feeling pressure to spend money.”
It’s Easier Than Ever To Overspend
“Between buying gifts, planning parties, travel, and other holiday activities, expenses add up quickly,” said Renée Campbell, the director of Youth & Family Banking at JPMorgan Chase & Co.
With credit card debt for Americans reaching a record total of $1.17 trillion according to a recent report from the Federal Reserve Bank of New York, it’s clear that Americans are making purchases on credit that they can’t afford. It’s also easier than ever to overspend due to buy now, pay later programs and online shopping. You can have anything that you desire within a few clicks, even if you don’t have the budget for it.
Kullberg added, “Overspending during the holidays often comes from a generous place, but the last thing your loved ones want is for you to add financial stress to your plate over stuff.”
How can you overcome this stress?
“It’s important to get ahead of this by setting a budget early to help you stay on track financially and help reduce some of the stress of planning,” said Campbell. “Digital tools, like your banking app, can help you better understand your budget and savings by allowing you to create and track your budget; or, consider automating your savings using tools like autosave.”
You’ll want to use any tools that you have available to you so that you can try to track your finances better so that you know what’s happening with your money. Since it’s so easy to overspend these days, you have to be even more diligent about monitoring your money and ensuring that you stay on budget so that you don’t end up with a credit card bill that you can’t afford in 2025.
It Feels Like You Have To Get Gifts for More People
Another possible reason you could be more stressed about your finances this year is that you feel you have to get a gift for everyone in your life. With restrictions lifting and in-person activities resuming over the last few years, you may have made new friends or expanded your social circle compared to the pandemic era. You may also find yourself getting invited to more holiday-related festivities where you feel like you can’t show up empty-handed.
How can you overcome this stress?
Campbell suggested going in for a group gift with friends or family to split the cost of an item. You can also get creative and give something homemade, like art or a craft, or prepare a meal for the family.
You’ll also want to set expectations and have conversations in advance so you don’t feel pressured to purchase something for everyone you plan on encountering over the holidays. By preparing in advance and being proactive about holiday expenses, you can help alleviate some of the financial stress associated with this time of the year.
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