With B.C. residents set to outspend the rest of Canada this holiday season, averaging $2,334, financial adviser Terry Wright, CIM, shares practical insights to master holiday spending psychology. From tackling FOMO to reframing financial priorities, discover actionable strategies that balance festive fun and financial responsibility. Perfect for young Canadians navigating holiday pressures! —Noa Nichol
Q. How can Millennials and Gen Z’ers navigate the emotional triggers that lead to overspending during the holiday season?
The holidays are a whirlwind of emotions, from nostalgia for past traditions to the pressure of creating perfect moments for loved ones. For Millennials and Gen Z’ers, this emotional cocktail can make sticking to a budget feel nearly impossible. Nostalgia tempts us to recreate magical moments from our childhood, often by splurging on lavish gifts or over-the-top decorations. Meanwhile, social pressure fueled by Insta-worthy posts and endless TikTok gift guides convinces us that we need to spend big to keep up. Add FOMO to the mix, and suddenly that “exclusive” holiday sale feels like a can’t-miss opportunity, even when it stretches your budget too thin.
The good news? You can avoid these emotional spending traps with a few simple strategies. Start by creating a clear, realistic holiday budget that outlines how much you can afford to spend and divide it into categories like gifts, travel, and events. Once you’ve set your limits, stick to them. Awareness is key: take a moment to reflect on your spending habits. Are you buying a gift out of guilt, or are you chasing the thrill of a “too-good-to-be-true” sale? Pause before you swipe and ask yourself if the purchase aligns with your values and financial goals.
Another powerful mindset shift is embracing JOMO (Joy of Missing Out). Instead of giving in to the pressure of holiday trends, focus on what truly matters to you. Maybe that means skipping the hottest new gadget and opting for thoughtful, personalized gifts that hold more meaning. It might also mean choosing quality time over extravagant outings, like hosting a cozy game night instead of booking expensive tickets to a holiday event.
Finally, remind yourself that the holidays aren’t a competition. The most cherished moments don’t come from the most expensive purchases. They come from the thought, effort, and care behind them. By identifying your emotional triggers and reframing how you approach holiday spending, you can enjoy the season without the financial hangover come January.
Q. What are some practical tips for balancing the fear of missing out (FOMO) with the need to stay financially responsible during the holidays?
The holidays can stir up serious FOMO, especially with social media showcasing luxe parties, extravagant gifts, and perfectly curated decor. But with some creative strategies, you can stay financially savvy while still embracing the magic of the season.
- Unfollow for the Holidays
Take control of your social media by muting or unfollowing accounts that trigger you to spend. Swap in creators who focus on sustainable, DIY, and budget-friendly ideas to keep you inspired.
- Create a ‘Vibe’ Budget
Think big picture. What kind of holiday memories do you want to create? Whether it’s cozy family nights or fun friend hangouts, let your spending reflect these priorities. Use apps like Notion or aesthetic budget trackers to make budgeting part of the fun.
- Play Wishlist Roulette
Take the stress and cost out of gifting by organizing a Secret Santa. Randomly assign friends or family a person to buy for, with a shared wishlist to ensure thoughtful gifts that fit any budget.
- Go Gift-Free with a Talent Swap
Instead of physical gifts, exchange talents or experiences. Think homemade meals, a workout session, or even offering pet-sitting or house painting. These gifts are personal and more memorable.
- Host a No-or Low-Spend Holiday Hang
Plan budget-friendly get-togethers like a holiday movie night, cookie-decorating party, or DIY craft session. These events are all about connection, not consumption.
- Trade Traditions with Friends
Each friend or family member introduces one affordable tradition like DIY festive photoshoots, ugly sweater parties, or visiting holiday light-ups together. It’s a meaningful way to share new ideas while keeping costs low.
With these practical ideas, you can enjoy all the holiday magic and Insta-worthy posts without overspending or succumbing to FOMO. The key is to focus on what matters most: connection, creativity, and the joy of the season, on your terms and within your budget.
Q. You describe a financial adviser as a “money therapist.” Can you elaborate on what this means and how it applies to holiday spending?
A financial adviser is like having a personal trainer for your finances – they help you build strength, resilience, and confidence with your money, ensuring that your financial habits align with your goals. When we call a financial adviser a “money therapist,” it emphasizes their role in addressing not just the technical aspects of financial planning, but also the emotional, behavioural, and strategic elements that can make or break your financial health.
Here’s how a financial adviser can make a difference, especially during the holidays:
What’s the Point of a Financial Adviser?
- Personalized Guidance
Everyone’s financial situation is unique, and a good adviser helps you craft a plan tailored to your income, goals, and values. They don’t just provide advice; they provide your advice.
- Emotional Balance
Money is emotional. Whether it’s the guilt of not giving enough, the pressure to impress, or the fear of missing out, an adviser offers a grounded perspective to help you make rational decisions during high-pressure times like the holidays.
- Accountability Partner
Just like a personal trainer helps you stick to your workouts, a financial adviser helps you stay on track with your spending and savings goals.
How They Can Help With Holiday Spending
- Building a Holiday Budget
A financial adviser can guide you in creating a clear, realistic holiday budget that ensures you enjoy the season without jeopardizing your financial goals. They’ll help allocate funds for gifts, travel, and events while covering your essential expenses and savings.
- Navigating Emotional Spending Triggers
The holidays amplify emotional triggers like guilt, nostalgia, or FOMO. A financial adviser helps you recognize and create strategies to manage these triggers.
- Aligning Spending with Long-Term Goals
It’s easy to get caught up in holiday hype and lose sight of the bigger picture. A financial adviser helps you focus on long-term objectives, such as building an emergency fund, paying off debt, or investing for the future. They’ll ensure your holiday spending fits into the larger framework of your financial plan.
- Debt Management and Prevention
If you’ve relied on credit cards for holiday spending in the past, an adviser can work with you to avoid falling into the same pattern. They might recommend cash-only approaches, savings strategies, or responsible use of rewards programs.
Having a financial adviser isn’t just about numbers; it’s about having a partner who understands the why behind your financial decisions. They’re there to help you celebrate the holidays without compromising your financial peace of mind.
Q. With B.C. residents projected to outspend the rest of Canada this season, what strategies would you recommend for setting realistic financial priorities without sacrificing holiday enjoyment?
With West Coasters leading the charge as Canada’s biggest holiday spenders, it’s more important than ever to take control of your finances while still enjoying the festivities. The holidays don’t have to derail your financial goals – in fact, with the right strategies, they can align with them. Here are key tips to set realistic financial priorities without sacrificing the joy of the season:
- Set (and Stick to) a Budget
Start by determining how much you can afford to spend during the holidays without compromising essential expenses or savings. Break it into categories like gifts, travel, events, and charitable contributions. A clear budget ensures you don’t overspend, and tracking your expenses using apps like Mint keeps you accountable in real time.
● Invest in Your Future Before the Holidays
The holidays are short-lived, but your financial goals are long-term. Make contributions to your RRSP or TFSA before allocating funds to holiday expenses. If you’re in a position to max out these contributions, you can reduce your taxable income while investing in your future – a win-win!
● Make Charitable Giving a Part of Your Plan
The holidays are the perfect time to give back, and making charitable contributions can benefit both your community and your finances. Start by planning your donations: decide how much you can give and choose causes that resonate most with you. Be strategic by supporting registered charities, as these contributions often come with tax benefits. Save your receipts to claim deductions on your tax return, making your generosity a win for both your heart and your wallet.
● Limit Impulse Spending with Thoughtful Planning
Start by making a detailed list of everyone you plan to buy gifts for, complete with specific gift ideas and spending limits for each person. Shopping early not only helps you stick to your plan but also allows you to compare prices and avoid costly last-minute decisions. If you use cashback or rewards credit cards, let them work in your favour—but only if you can pay off the balance in full to avoid interest charges.
- Treat Your Budget Like a Holiday Tradition
Instead of seeing your budget as a restriction, think of it as part of your holiday planning. Building your budget around your priorities – like giving, saving, and celebrating – makes it feel less like a chore and more like a way to maximize joy without financial regret.
Q. What actionable steps can younger Canadians take right now to reframe their approach to holiday budgeting and make smarter spending decisions?
It’s not too late to hit pause and rethink how you approach holiday spending. Instead of letting impulse buys and gift-giving pressure take over, why not flip the script? By focusing on intentional choices and aligning your budget with your values, you can make this season both joyful and financially smart.
1. Audit Last Year’s Holiday Spending
Before diving into this year’s budget, take a moment to review what you spent last year. Where did you overspend? What felt worth it, and what didn’t? Identify areas where you can cut back without losing joy. Maybe that means skipping pricey events or finding more affordable gift options this time around.
2. Define a “Holiday Mission Statement”
Reframe how you think about holiday spending by asking: What do I want the holidays to mean this year? Your mission could focus on spending quality time with family, giving back, or making meaningful memories. Write it down and use it as a guide when deciding how to allocate your money.
3. Schedule a “Financial Check-In” Before Big Purchases
Spontaneous purchases are a major holiday trap. Avoid them by setting aside 15 minutes before hitting “Add to Cart” to assess whether the purchase fits your plan. Ask yourself – Do I really need to buy this? Does this align with my priorities, and Will I regret this in January?
4. Combine Holiday Shopping with Your Values
Millennials and GenZ’ers care about making an impact. Combine your financial goals with purposeful spending. Support local businesses, shop secondhand, or choose sustainable brands. You’ll feel good about your purchases while sticking to your budget.
5. Simplify Gift-Giving with “The Three-Gift Rule”
Instead of buying endless gifts for everyone, focus on three categories for your closest loved ones: something they want, something they need, and something meaningful. Limit each gift to a specific price range and focus on quality over quantity.
6. Gamify Your Holiday Budget
Make sticking to your budget fun by turning it into a personal challenge. For example, challenge yourself to save by skipping unnecessary purchases or shopping for the best deal. Reward yourself with something small but meaningful (and affordable) when you hit your goal.
By shifting the focus away from consumerism and toward intentional, meaningful choices, Canadians can take control of their holiday spending. These steps help reframe the season as an opportunity for thoughtful planning, personal growth, and community connection – without the financial hangover.
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