One in four people suffers from impulsive spending during the holiday season, according to a recent study.
The survey of 2,000 Americans celebrating winter break looked at the challenges and mental health difficulties that respondents say can surface during the holidays. According to respondents, the winter holidays are considered the most financially stressful time of the year.
More than half (56%) said they felt pressured to spend money while on vacation.
According to our findings, the most common sources of pressure are family (71%), friends (28%), and social media and pop culture (19%).
The survey also found that more than three-quarters (76%) of respondents experienced “money scars” – emotional hardship and distress caused by financial hardship.
According to the results, the most common money scars are low self-esteem due to financial circumstances (26%), impulsive spending (21%), shame from past financial failures (21%), and Scarcity mindset (20%). .
And the most prominent and common financial problem, especially during the holiday season, is impulsive spending (25%).
This research was commissioned by: Beyond financewas conducted by Talker Research, a debt consolidation company, to uncover where money hurts come from and what experiences can lead to these bad financial habits and mindsets. .
Respondents said the most common “money traumas” that cause financial stress include past financial failure (40%), not having enough money in young adulthood (34%), and chronic debt (34%). 25%).
And most people (68%) who have experienced financial harm say it has affected their sense of fulfillment and success.
Looking at how money-related stress can have a particularly big impact during the holidays, more than a quarter (27%) say they have trouble thinking about money or develop bad habits while on vacation. They answered that they would be caught off guard if it happened again.
And this year, more than six in ten (61%) reported feeling worried about their finances this year for good reason.
“In weekly therapy sessions with clients struggling with credit card debt, we regularly hear about the same challenges and mental health struggles highlighted in these findings, especially intensified during the holiday season.” said Dr. Erica Rasul, Chief of Financial Wellness. Advisor to Beyond Finance. “It's important to remember that you are not alone. Recognizing these challenges and seeking support is an important step in managing financial stress and finding peace.”
The majority (54%) of people who have been hurt by money admitted that they found themselves hiding or avoiding money issues during the holidays. This looks like refraining from buying gifts (37%), declining party invitations (33%), and not checking their bank account balances (29%).
42% said they distance themselves from others during the holidays so they don't feel “less than” or pressured to spend money to fit in. However, respondents said distancing made them feel shame (38%), guilt (39%), and loneliness (40%).
To combat this, most people (61%) say they're trying to live by the saying, “Money and spending doesn't equal happiness” this holiday season.
As part of the healing process, more than a quarter (27%) of people with money-related stress discuss their stress with a therapist, life coach, or mental health professional, and 26% consult a financial professional. We worked with them to improve their financial habits. .
Considering their experiences with financial stress, respondents said it takes an average of six years for money wounds to heal.
However, a significant number (37%) reported that they did not believe money-related trauma could ever be completely cured.
“As a company known for our innovative and caring approach to helping our customers achieve financial freedom, this research highlights why we are focusing on financial and mental health,” said Lou Antonelli, Beyond Finance's chief operating officer. “It highlights why it is so important to focus on the deep connections between health.” “The financial pressures of the holiday season can exacerbate money scars, but by tackling these challenges head-on, we can help people get out of debt and build the lives they deserve. We aim to do so.”
most common money scars
Low self-esteem due to financial circumstances – 26%
Extravagance/compulsive spending – 21%
Shame and guilt stemming from past financial failures – 21%
Scarcity mindset – 20%
Financial insecurity even though there is no economic threat or hardship – 17%
Avoiding discussions or thoughts about money – 16%
Postponing financial responsibilities – 15%
Falsely feel responsible for family member's financial difficulties – 15%
Disagreements about money with your partner – 12%
Extreme frugality – 10%
Hide money from partner – 7%
Save money – 6%
Here's how to avoid money scratches while on vacation.
Avoiding financial conversations with others – 37%
Refrain from buying gifts for others – 37%
Avoid entering stores – 36%
I can’t be honest with myself about my “money scars” or stress – 34%
Declining an invitation to a holiday party – 33%
Avoid online shopping – 30%
Avoid checking bank account balances – 29%
Research method:
Talker Research surveyed 2,000 Americans celebrating the winter holidays. This research was commissioned by Beyond Finance and managed and conducted online by Talker Research from September 27, 2024 to September 30, 2024.
