Unlock Your Financial Freedom: How to Heal ‘Money Wounds’ and Avoid Holiday Spending Guilt

The holiday season, often seen as a time for joy and celebration, can also bring significant financial stress for many. A recent survey of 2,000 Americans who celebrate winter holidays revealed that one in four individuals struggles with compulsive overspending during this time. The findings highlight how the holidays are not just a festive period but also the most financially stressful season of the year for many.

The Sources of Holiday Financial Pressure

Over half of respondents (56%) admitted to feeling pressure to spend money during the holidays, with family (71%), friends (28%), and social media (19%) being the primary sources. These pressures contribute to “money wounds”—emotional struggles tied to financial challenges.

The survey, conducted by Talker Research and commissioned by Beyond Finance, found that 76% of respondents experience money wounds. The most common issues include low self-esteem due to financial circumstances (26%), compulsive overspending (21%), shame from past financial mistakes (21%), and a scarcity mindset (20%).

During the holiday season, compulsive overspending becomes particularly pronounced, affecting 25% of respondents. For many, the roots of these financial struggles lie in past experiences such as financial mistakes (40%), insufficient resources during young adulthood (34%), or chronic debt (25%).

Emotional Impact of Financial Stress

The psychological toll of financial stress is significant. Two-thirds (68%) of those with money wounds reported that these challenges hinder their ability to feel fulfilled and successful. During the holidays, over a quarter (27%) feel caught off guard when their money-related anxieties resurface. This year, 61% of respondents expressed anxiety about their finances.

Dr. Erika Rasure, a financial wellness advisor, emphasized the importance of addressing these struggles: “Acknowledging these challenges and seeking support are key steps toward managing financial stress and finding peace.”

Many individuals cope by avoiding financial realities, with 54% admitting they hide from their money troubles during the holidays. Common avoidance behaviors include refraining from gift shopping (37%), skipping social events (33%), and avoiding bank account checks (29%). Unfortunately, this isolation often leads to feelings of shame (38%), guilt (39%), and loneliness (40%).

Steps Toward Financial and Emotional Healing

Despite the challenges, many are trying to shift their perspective. Over 60% of respondents aim to embrace the belief that “money and spending don’t equal happiness” this holiday season. As part of their healing journey, 27% have sought help from therapists or life coaches, while 26% have worked with financial experts to build better habits.

However, the road to recovery is long, with respondents estimating it takes an average of six years to heal from money wounds. Sadly, 37% believe that money-related trauma never fully disappears.

Lou Antonelli, COO of Beyond Finance, underscores the importance of addressing these issues: “The financial pressures of the holiday season can amplify money wounds, but by addressing these challenges head-on, we aim to empower people to break free from debt and build the lives they deserve.” By fostering awareness and seeking support, individuals can start to alleviate the financial and emotional burdens of the holiday season.