The holiday season, typically a time of joy and generosity, also brings a significant set of financial challenges for many. A recent Talker study reveals 1 in 4 people grapple with compulsive overspending during holidays, highlighting the mental and emotional toll the holidays take on people’s finances.
Talker surveyed 2,000 Americans who celebrate a winter holiday, aiming to uncover some of the hidden financial struggles that emerge during the season. The findings paint a stark picture of the economic pressures many feel, making the holidays the “most financially stressful season of the year,” according to respondents.
Pressure To Spend
More than half (56%) of respondents reported feeling a sense of obligation to spend money during the holidays. The sources of this pressure vary, with family members (71%) topping the list, followed by friends (28%) and social media/pop culture (19%). This pressure can contribute to significant financial strain, with many people resorting to overspending in an effort to meet expectations.
The survey also highlights a deeper issue: emotional distress tied to financial struggles. Over three-quarters of participants (76%) say they experience what are known as “money wounds,” or emotional difficulties stemming from financial hardship. These wounds manifest in various forms, from low self-esteem and compulsive spending to feelings of shame and guilt over past financial mistakes.
Respondents’ most common money wounds include low self-esteem (26%), compulsive overspending (21%), and a scarcity mindset (20%). During the holiday season, compulsive overspending affects 25% of those surveyed.
The survey further explores the origins of these financial struggles. Respondents cite past financial mistakes (40%), a lack of money during young adulthood (34%), and chronic debt (25%) as the most common “money traumas” contributing to ongoing financial stress. For many, these experiences have long-lasting effects, with 68% of respondents revealing money wounds hold them back from feeling fulfilled and successful.
Holiday Stress and Anxiety
The financial pressures of the holidays can exacerbate these issues, with 27% of respondents admitting they are taken by surprise when their money-related stress and bad habits resurface.
In the survey, 61% expressed anxiety about their finances, and many admit they avoid financial conversations or responsibilities during the season. In fact, 54% of those with money wounds say they tend to hide from their financial troubles during the holidays.
This avoidance behavior can include refraining from buying gifts (37%), declining party invitations (33%), and even avoiding checking bank account balances (29%). Additionally, 42% report distancing themselves from others to avoid the pressure to spend money, leading to feelings of shame (38%), guilt (39%), and loneliness (40%).
Seeking Help and Healing
Despite the overwhelming nature of financial stress, there is hope. Over half of respondents (61%) strive to adopt the mindset that “money and spending don’t equal happiness” this holiday season. Around 27% have sought help from a therapist or mental health professional to address their financial struggles, and 26% have worked with a finance expert to improve their financial habits.
However, the road to healing is often long. Survey respondents say, on average, it takes six years for a money wound to heal. Yet, a significant number of respondents (37%) expressed doubt that money-related trauma ever completely heals, highlighting these wounds’ enduring nature.
The Need for Compassionate Support
Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, emphasizes the importance of seeking support in times of hardship. “In my weekly therapy sessions with clients burdened by credit card debt, I regularly hear about the same challenges and mental health struggles highlighted in these survey findings, especially as they intensify during the holiday season,” she said. “It’s crucial to remember you’re not alone. Acknowledging these struggles and seeking support are key steps toward managing financial stress and finding peace.”
Lou Antonelli, COO of Beyond Finance, added, “The financial pressures of the holiday season can amplify money wounds, but by addressing these challenges head-on, we aim to empower people to break free from debt and build the lives they deserve.”
As the holiday season continues, experts urge individuals to be mindful of their financial well-being and seek support when necessary. With the right tools and mindset, it is possible to overcome economic stresses and work toward lasting financial healing.
