Jalal Ahamed is a Docent in Business Administration at the University of Skövde. He has studied financial anxiety, which has a widespread negative impact on people's mental health and relationships. Unfortunately, Christmas increases the risk of financial anxiety, but there are ways to counteract it. Here, Jalal Ahamed shares five tips on how to manage your financial worries as Christmas approaches.
Talking about financial worries with friends and family can provide both support and perspective on economic concerns.
The decorations malfunction, the children are screaming, and the money is running out. Many struggle to stick to their budgets while striving for the perfect Christmas. Increased stress and high expectations of consumption raise the risk of financial anxiety, negatively affecting both our health and our relationships.
New research from the University of Skövde also shows that financial anxiety often leads to impulsive purchases as a form of temporary relief, creating a vicious circle of financial concerns. Fortunately, there are ways to handle the situation.
Jalal Ahamed shares five strategies that research has shown to be effective in helping us navigate through the Christmas stress without emptying our wallets. Those expecting a quick fix may be disappointed, but perhaps not surprised.
- Seek Support from Loved Ones
Discussing financial concerns with friends and family can provide both support and perspective. Having someone to lean on can reduce stress and help you manage financial challenges more effectively. Openly talk with a friend or family member about your holiday budget and share your ways of handling finances. - Create Your Stress Management Strategies
Having simple strategies to reduce stress can help you manage anxiety without resorting to consumption. This could include activities like reading, taking a walk in nature, or practising mindfulness. Make a list of activities that help you feel relaxed and fulfilled, and refer to it when shopping urges arise. - Mindful Shopping – The 24-Hour Rule
Asking yourself, “Is this purchase really necessary?” can help you refrain from impulsive decisions and make more considered choices. This simple question can often be a powerful tool in reducing overconsumption. Make it a habit to wait at least a day before making larger purchases. Reflect on whether the item truly meets a need or if it’s a spontaneous impulse buy. - Give Yourself Time to Understand Your Finances
Good financial management is a crucial foundation for reducing financial anxiety. The more you know about budgeting, saving, and smart shopping, the easier it becomes to avoid unnecessary consumption. Use a digital budgeting tool or app to gain better control over your expenses, or take a short course in personal finance to strengthen your knowledge. - Consider Professional Advice if Needed
Speaking with a financial advisor can provide you with tools for better financial management. An advisor can help you identify ways to reduce costs and plan long-term to avoid future stress.
Read More About the Research The research on financial anxiety was published in the International Journal of Bank Marketing under the title: Financial Anxiety: A Systematic Review.
