Hidden Holiday Financial Stressors

With only 8 weeks until Christmas, the holiday season is officially upon us! While it can be an exciting time filled with friends, family, and festivities, it can also bring financial stress. In fact, financial stress is often cited as one of the biggest stressors people face during the holidays. 

If you take a minute, you can probably identify the big expenses you’ll face this holiday season. But, what about the less common expenses you may find sneaking into your holiday budget? The holidays come with hidden expenses that can cause stress and derail your financial goals if you aren’t careful. 

Let’s look at six hidden holiday financial stressors to help get your holiday budget prepared for the unexpected.

Identity Theft

American adults lost $43 billion to identity fraud in 2023, according to a report cosponsored by AARP. Experts agree that the chance of identity theft goes up over the holidays because shoppers are more active and so are the thieves who steal identities. 

Having your identity stolen can cost an average of $1,200 according to CNBC. Be sure to protect your identity and personal information while you shop, whether in person or online. Keeping this information safe and private is the best way to avoid this hidden holiday financial stressor.

Holiday Parties

Between work, friends and family, the holiday season can be busy with parties. These parties come with hidden costs that can add to financial stress. Whether you need to bring food to share, a gift for the host, or buy a new holiday outfit, the costs associated with holiday parties add up quickly. 

As you are planning your holiday season, look at last year’s holiday spending to estimate how much you spent on holiday parties. Add this to your budget as a buffer. Also, if you have kids who won’t be going to parties with you, don’t forget to add some extra money to cover childcare.

Gift Wrap and Supplies

While you’ve probably budgeted for gifts this holiday season, did you budget for gift wrap and tape? We often think of the gifts, not the wrapping and trimming. 

It’s important to consider the cost of wrapping gifts and look for ways to trim down this expense. Consider using recycled materials (think paper grocery bags or magazines), reusing gift bags and consolidating gifts. If you need to mail gifts to family and friends, don’t forget to add this cost to the gift wrap and supplies budget. 

Hidden Travel Expenses

If you’re traveling over the holidays, you’ve probably already factored in the cost of your plane tickets, gas, and accommodations. But holiday travel can come with hidden expenses you’ll want to factor in to avoid financial stress. 

Think carefully about your travel and all associated expenses. Add things like pet boarding, baggage check fees, airport parking, or Uber rides to your holiday budget. Planning for these hidden travel expenses can help you stress less because you know they are covered.

Holiday Decorations

You probably already have the big decorations in storage for the holiday season. But that doesn’t mean that you won’t face unexpected holiday decorating expenses. You may need to buy an extra string of lights if some of your old ones have burnt out. Or you may be hosting a holiday dinner for the first time and decide it’s time to update your table decorations. Whatever the case may be, there will always be unexpected holiday decoration expenses that come up. 

It can be helpful to review your holiday spending from last year to see how much you spent on decorations so you can factor it into the budget. But don’t worry if you don’t have access to that information or just can’t remember. You can estimate your holiday decoration costs and add this figure to your budget.

Unexpected Gifts

Even when you make a list of people you need to buy gifts for, someone unexpected always pops up. Whether it’s Secret Santa at work, your child’s teacher, or a friend you didn’t expect to see during the holiday season, buying unexpected gifts can create financial stress. 

To give yourself room for these unexpected gifts, create a buffer in your holiday gift budget. This can help lower stress levels and ease pressure on your budget.

Creating Your Holiday Budget   

The holidays are an expensive time and it’s impossible to account for every little holiday expense that might come up. Take some time now to consider how you celebrate the holidays and which hidden holiday financial stressors are most likely to sneak up on you. Take these expenses and add them to the holiday budget you create for yourself. 

Having a holiday budget will ease stress and help you stay focused on the joys of the season! For steps to creating a holiday budget you can stick to, read our article How to Create and Stick to a Holiday Budget.