The holidays are a great time of year to gather with loved ones and participate in the festivities this season brings. However, there’s a cost. During this time of year, many people overspend and/or worry about their finances. A 2024 survey by Experian revealed that 56% of consumers felt stressed about their finances during the holidays. Additionally, two-thirds of survey participants reported that they spend too much this time of year. 

No matter how stressed you feel about your holiday finances, Lightfully is here to help you navigate these feelings with effective coping strategies, so you can more fully enjoy this time of year. 

Keep reading to learn ways financial and mental health intersect during the holidays, so you can protect your money and well-being. 

5 ways financial and mental health intersect during the holidays

The holidays can bring joy and excitement, but it can also be stressful. Financial situations can impact mental health in many ways this time of year. Knowing these circumstances and how to manage them can help you alleviate stress and better enjoy this season. In fact, a 2023 survey by the American Heart Association found that 71% of respondents regretted not taking time to enjoy the holiday season. Fortunately, there are ways to overcome these pressures.

Here are five ways financial and mental health are connected during the holidays:

1. Pressure to spend money

The holiday season can be a fun time of year, but it can come with many expectations. You may feel like you have to buy gifts, go to holiday parties, host gatherings and participate in traditions. This pressure can cause financial stress, especially if your budget is limited. You may find yourself having a hard time saying no or opting out of certain activities for fear of disappointing loved ones. 

To ease holiday pressure, you can set a budget and communicate your boundaries with your friends and family. Remember, the holidays aren’t about spending, and you don’t have to buy an expensive gift to show someone you care. Thoughtful gestures like handwritten notes or homemade treats can go a long way without adding financial strain.

2. Work and income stress

For some, the holiday season can affect your work. You may experience overtime or reduced hours, which causes uncertainty about your income. Fluctuating income can add to the financial pressures of the holidays. Letting these pressures overwhelm you can make it harder to find joy this time of year. 

To navigate these challenges, you can focus on your most important expenses. This step can help reduce overspending on nonessentials. You can also find support from a financial expert who can help you manage your money and ease the stress of figuring things out on your own.

3. Charitable giving and guilt

The holidays are a popular time of year for charitable giving, but it’s not always easy to make a donation. It’s common to face the conflict of wanting to give but feeling unable to. With all the expenses that add up over the holidays, including family meals and presents, it can be stressful to determine what you can afford and prevent overspending. 

If you find yourself facing this conflict, you can try a few ways to manage it. Try to determine how much you can comfortably donate, and it’s OK if you’re unable to donate to charity this year. You can consider volunteering instead or plan to donate in the future when it’s more feasible. 

4. Family dynamics and gift giving

Family expectations about gift giving, holiday traditions and celebrations can create stress. Identifying your family triggers can help you find ways to cope with these pressures. You don’t need to overspend or go out of your way to meet someone else’s expectations. 

Being assertive can go a long way toward managing your stress, time and finances. You can set a budget, consider homemade or budget-friendly gifts, and/or choose not to attend activities that may be draining. Assertiveness can also help you maintain healthier connections with your family and friends. 

5. Holiday overindulgence

The holidays are a great time of year to have fun and celebrate, but it can be easy to overdo it. Overindulging in food, drinks or shopping can take a toll on your finances. Spending too much may lead to regret, guilt or stress. 

You can try to prevent overindulgence by setting limits for yourself. It’s OK to plan purchases ahead of time and prioritize necessities. Be sure to strike a good balance, so you can enjoy the things you love without the guilt of overdoing it. 

Find expert support to protect your mental health this holiday season

The holidays can be both joyful and stressful, but how you choose to head into the season can make a difference. Implementing these strategies to navigate holiday pressures can help you approach this time of year with greater confidence and boundaries. As a result, you can protect your well-being and better enjoy this time of year. 

If finding ways to ease financial stress sounds like too much to manage on your own, it’s OK. At Lightfully, our licensed clinical therapists can help you navigate this holiday season, helping you enjoy it to the fullest. We provide evidence-based, data-driven and whole-person-centered care. Explore our four levels of care to see how we can support you this holiday season and beyond.

Change is possible. When you’re ready to take the first step, reach out to our Admissions Concierge Team. We’ll take the next steps together, toward the fullest, brightest version of you.