As the year winds down and the holiday season settles in, there’s a certain comfort that culminates through every household. Work slows, families gather, and for the first time in months, the pace of life finally feels free. It’s the one stretch of the year when the days are open, the moments feel intentional, and the overall rush comes to a pause.
Without a doubt, this time is something everyone has been anticipating all year. The season is filled with joy and well-deserved rest, and for the most part, space becomes valuable. That is, there’s space to reflect, realign, and reset. That idea is especially prominent when it comes to finances.
As meaningful and peaceful as the holidays are, they are also one of the most financially draining times of the year. The holidays aren’t cheap, and according to a new study by Achieve, the average American spends over $2,000 every holiday season. Between the gift expenses and holiday obligations, the money reaches record highs, and it is a reminder that even the happiest times can come with pressure.
One reason why the holidays elevate financial weight is because of the expectation to outperform and make the season perfect. From the same Achieve report, it found that the holidays are expensive because of travel, where those planning to go somewhere will spend an average of $846. In addition to that, Americans anticipate spending over $550 on gifts alone, with the most money being spent on their loved ones and kids.
Psychologically speaking, it is also true that the holidays come with an immense amount of mental and emotional strain. Achieve also claims about 65% of Americans say they are stressed about their holiday spending this year, where 73% of them indicate their financial anxiety takes away from their enjoyment of the season.
The data itself proves not only how intense the holidays can be, but also why it is important to get financially situated now. During a time when families are already slowing down, the holidays signal the best opportunity to get the money right.
“We’re officially in the last portion of the year where the holidays are slowing us down and new year’s resolutions are roaming our minds. And with so many of us forced to pause right now, this is one of the most rare windows to set your financial goals so that 2026 starts off strong. Before the demands pile up in January and while you have the mental capacity to think straight, everyone should use this moment to evaluate what’s working financially and what needs to shift. The financial clarity you build today will carry far more weight than any rushed resolution at the beginning of the year,” says Michael Scarpati, CEO of RetireUS.
When families approach their finances during this time, it allows for the mind to plan strategically without the heavy chaos that typically comes from other months of the year. Instead of waiting when the days get busy, this is when people can give their financial situations their full attention.
If approached thoughtfully, financial planning today is also the best way to start off the new year strong. Here are some ideas to get ahead:
- Get a transparent look at your financial picture by reviewing current budget, intentions, and goals.
- Identify what’s working versus what’s not and make important decisions that will promise a stronger financial future.
- Create realistic timelines for 2026, whether that is paying debt monthly or saving a set amount of money by a certain date.
- Consider getting professional advice if you are still uncertain about where to go and need additional expertise to help answer any questions.
At the end of the day, the holidays are something we should all be celebrating. But at the same time, they should be critical moments to regain control so that the finances don’t go awry once the next year rolls around.
Since the free time is naturally built in for us, the opportunity to create a financial plan that lasts has never been more urgent. By taking advantage now, you won’t regret your choices by the time January 1 comes.
That being said, we promise your financial freedom is almost here, as long as you are willing to catch up.
