The holidays are often regarded as a time of joy, yet they frequently bring with them a significant financial burden. Each year, when the holiday season arrives, saving for the various expenses becomes a challenging task. Whether it's purchasing gifts, organizing dinners, attending parties, or going on trips, the costs can quickly accumulate.

Unlock the Secrets to Holiday Financial Success

Understanding the Holiday Financial Challenge

During the holiday season, people face a dilemma. On one hand, they want to make the holidays special with gifts and celebrations. On the other hand, they need to manage their finances carefully to avoid financial stress. According to a recent survey by PwC, shoppers are planning to spend an average of over $1,600 on gifts, travel, and entertainment this year. This is a 7% increase from the previous year, highlighting the growing financial pressure during the holidays.It's important to recognize that these expenses can have a significant impact on our overall financial health. Without proper planning and budgeting, we may find ourselves in debt or facing financial difficulties in the new year.

Insights from Michael Liersch

Michael Liersch, the head of Advice and Planning for Wealth and Investment Management at Wells Fargo, offers valuable insights into managing financial stress during the holidays. With a PhD in Cognitive Psychology, he has studied how the brain works when making money decisions.Liersch emphasizes the human tendency to seek certainty. By following the same spending patterns every year, we create a sense of certainty, even if it may not lead to the best financial outcomes. However, to overcome this, we need to push ourselves to do things differently.This can involve setting a budget and sticking to it. It also means prioritizing the quality of gifts over their quantity. Instead of buying multiple cheap gifts, consider investing in a few high-quality items that will be truly appreciated.Moreover, being open with our loved ones about our financial limitations is crucial. By having honest conversations, we can avoid overspending and ensure that everyone is on the same page.

Taking Action with Money Glow Up

In this week's episode of Money Glow Up, Tiffany Aliche hosts a conversation with Michael Liersch to share practical tips and strategies for managing holiday finances. Together with Yahoo Finance, they create a platform where real and inspiring money stories are shared, and financial fundamentals are learned.Every Thursday at 12 pm ET, step into the classroom with Tiffany Aliche, also known as The Budgetnista, and start your financial journey. Money Glow Up is produced by Lauren Pokedoff and Shelby Boamah, providing valuable content to help you navigate the holiday season and beyond.By following the advice and strategies shared in Money Glow Up, you can take control of your holiday finances and enjoy the season without the stress of overspending. Remember, small changes in our spending habits can make a big difference in our financial well-being.