Managing Money, Mental Health, and Festive Finances

Have you ever wondered why spending money can feel like a quick fix when you’re feeling down? Whether it’s treating yourself to a new outfit or booking a spontaneous holiday, spending can provide a temporary emotional lift. But behind this brief satisfaction often lies a deeper connection between money, spending habits, and mental health – something that becomes even more apparent during the festive season.

The connection between money, spending, and mental health

Many people use money as a way to gain control when life feels overwhelming. Whether it’s buying things to gain approval, "keep up appearances," or escape uncomfortable emotions, spending often serves as a temporary mood booster. Yet, these purchases can lead to a cycle of overspending and feelings of inadequacy when the initial emotional lift fades.

Social media and advertising only add to this problem, making us believe that owning certain items will make us happier or more successful. But the sense of fulfilment is often short-lived, leaving us feeling unworthy or dissatisfied.

 
Spending to soothe emotional needs

Buying gifts or spending money on others is often seen as an expression of love, but it can also be a way to mask deeper emotional issues, such as loneliness or low self-esteem. In such cases, spending becomes less about the item or experience and more about soothing uncomfortable feelings. However, this approach often leaves us feeling worse, both emotionally and financially, in the long run.

 
Why we feel the strain at Christmas

As the festive period approaches, the pressure to spend can be overwhelming. While it’s meant to be a time of joy, Christmas is also one of the most expensive times of the year, leaving many of us feeling stressed and anxious. Debt and financial strain often peak during this season, with increased spending leading to a sense of powerlessness for those already struggling to manage their money. This can result in what some refer to as ‘debtpression', where financial worries and mental health issues feed into each other.

Debt can lead to feelings of guilt, anxiety, and low self-esteem, especially when spending becomes a way to deal with emotional struggles. While many turn to retail therapy for comfort, overspending only deepens the problem in the long run, making it harder to regain control over both finances and emotional wellbeing.

 
Tips for budgeting during the festive season

If the financial pressure of Christmas is affecting your mental health, there are practical steps you can take to ease the burden:

• Review your finances: Taking a closer look at your budget is crucial. Prioritise paying essential bills and set a realistic spending limit for gifts and celebrations.
• Avoid credit where possible: Tempting as it might be to use credit cards or loans for Christmas shopping, borrowing without a clear repayment plan can quickly lead to further debt.
• Be creative with gift giving: Many families choose to focus gift-giving on children, or agree to buy less expensive gifts for adults. Alternatively, consider homemade or low-cost gifts, such as offering a favour or creating personalised presents.
• Plan ahead: Spreading the cost of Christmas can help ease the financial strain. Either save throughout the year or buy gifts gradually in the months leading up to the festive season.

It’s important to remember that Christmas should not come at the expense of your mental health. While the pressure to spend can feel immense, focusing on meaningful, low-cost ways to celebrate can make the season more manageable.

 
What can you do about It?

If you find yourself caught in a cycle of emotional spending, it’s essential to explore the underlying causes. Taking time to understand your emotional triggers can help break the cycle and lead to a healthier relationship with money.