Why do people feel financial pressure during this time of year?
Financial pressures during Christmas time often arise unexpectedly. In Australia, particularly, the holiday season is the start of summer break. That’s six whole weeks when many are off work and school. We may need to keep our kids entertained, as well as ourselves, which can lead to financial pressures—because, sadly, not everything in life is free.
Similarly, the holiday season can also involve the tradition of buying gifts for others. Some may feel pressured to buy expensive gifts during this time because we may think gifts of grandeur demonstrate a greater love for those closest to us. This is particularly true during Christmas-time advertising, where brands push their latest and best offerings, which can sometimes come with a hefty price tag. There is also the mounting pressure created by the cost-of-living crisis, which can compound all of these points.
In a 2023 study, The Research Society indicated that 38% of Aussies had financial concerns due to the pressures associated with Christmas and December. Equally, a Salvation Army 2021 study found that 83% of Australia’s hardest hit struggled to afford Christmas presents and that 10.5 million Aussies are highly stressed about their December finances. When people are faced with this financial burden, it can place significant strain on their mental wellbeing.
What financial pressures during Christmas can do to our mental wellbeing
According to our Converge experts, some people who are concerned about their finances are more likely to:
- Argue with family and friends about money.
- Have trouble sleeping.
- Experience greater mood swings.
- Withdraw and become solitary.
- Eat less but crave more unhealthy foods.
- Spending guilt.
These emotions can also be compounded by other factors, such as drugs and alcohol that some may use to cope with their stress – according to Health Direct Australia. In addition, HDA says pressures during the holiday season can also lead to relationship breakdowns, depression and anxiety.
Exercises to help you minimise the impact on your mental health
There are a number of exercises you can do to support your mental wellbeing during the holiday season. While this time of year can be joyful, it’s helpful to acknowledge our emotions and financial pressures. So, to ensure you’re caring for your mental wellbeing, here is what Health Direct says you should do:
- Be honest with those around you: If you cannot afford expensive gifts this year or chip in on a joint present where your family or friends haven’t considered your financial position, be vocal and let them know. There is no shame in being honest and letting those around you know that you can’t afford to over-indulge this year. In the long run, this can help mitigate these pressures.
- Prepare a budget: Budgeting is one of the most important aspects of holiday shopping. Segment your costs, divide them into pools, and then pick gifts to buy based on this budget. You must also factor in your essentials—food, energy, rent or mortgage, etc. So, start by subtracting these costs from your budget to see what you have left to spend.
- Start putting money aside early or optimise on sales: Consider buying presents during seasonal sale events, like Black Friday, when the price tag is slashed. This can help you get the presents you want at a cheaper price. Alternatively, put money aside during the year as a simple savings plan to ensure you have the funds you need for the holiday season. You could also purchase items over a few months instead of all at once.
- Look after yourself: As we’ve previously said, financial pressures can lead to excessive eating of unhealthy foods. So, ensure you’re still exercising, eating healthily, reducing unhealthy foods, and practising mindfulness techniques.
Find the positives
Remember: the holiday season is not about expensive gifts and outspending others. It’s a time for you to take a break, lean on loved ones, and enjoy your time together. So, find the positives of the festive period and keep that in mind. If you’re honest with those around you, you may be positively surprised by their reaction and find that you didn’t need to get that pricey gift to show your love. Also, remember, it’s the thought that counts!
Seek financial support from Converge
As your workplace wellbeing provider, we have the tools to support you with your financial pressures. One of our many specialties is financial coaching, so talk with one of our money experts; we can help you formulate a budget and discuss your concerns. Don’t suffer in silence or allow your financial strain to snowball. Support is always available anytime, anywhere! Give us a call, book an appointment via our app or website, or chat with us live.
