The holidays can increase financial stress

Life may feel like a delicate dance of balancing work, childcare, family obligations, and a semblance of a social life, among other daily life routines. Juggling things like work meetings, playdates, or family dinners leaves little time for self-care, while the demands of adulthood constantly build up. Before we know it, we may feel the persistent tug of financial responsibility compounding on top of daily stressors. When the holidays approach, it's common to think, "Can I afford to enjoy everything the season has to offer?"

Financial stress is a pervasive issue affecting many Americans, with two-thirds reporting anxiety related to their finances, according to a study by the American Psychological Association. The fear of not being able to pay for basic household items, maintain existing bills, invest in the future, pay off debt or enjoy daily expenses can be crippling to an individual's mental health and lead to more serious mental health issues like anxiety or depression.

This financial strain increases during the holiday season, as reported by the Conference Board Consumer Confidence Survey, when consumers become increasingly cautious with their spending. This time of year exacerbates stress by introducing additional expenses; often a difficult tightrope walk between hosting gatherings, balancing the budget for gifts, caring for family, and travel, all while managing regular monthly expenses. In such circumstances, allocating money to retirement plans or savings accounts becomes difficult, intensifying stress about an individual's financial futures.