Understanding and Managing Financial Stress

Understanding Financial Stress

Financial stress can significantly increase during the holidays and summertime. Businesses often promote sales and use language that encourages consumers to spend money while promising to help them "spend less." This marketing strategy can create pressure to purchase gifts for everyone in your life, leading to increased financial anxiety.

Causes of Financial Stress During Holidays and Summer

• Marketing Pressure: Sales and promotions can create a sense of urgency to buy.

• Gift Expectations: The societal expectation to give gifts can lead to overspending.

• Travel Costs: Summer vacations and holiday travel can strain budgets.

• Increased Expenses: Additional costs associated with events and gatherings can add up.

  
  

Managing Financial Stress

• Create a Budget: Set a realistic budget for gifts and activities.

• Prioritize Spending: Focus on meaningful gifts rather than quantity.

• Seek Alternatives: Consider homemade gifts or experiences instead of costly items.

• Communicate: Discuss financial limits with family and friends to set expectations.

I have found that it is easy to find a template through Google Sheets, Microsoft Excel, or Numbers (Mac). Once the initial costs are established, the budget is easier to update. I have heard many different techniques for managing a budget, so do not be afraid to explore. I like having cash for every purchase to help me stay within my budget, and one credit card for my subscriptions. I encourage you to find a financial planner to help create financial goals and for expert financial advice.