Expenses

Researchers find one in four people grapple with compulsive overspending during the holiday season. An overwhelming 56% of respondents feel pressured to spend money during the holidays, with family emerging as the primary source of financial strain.

More than 75% of respondents experience what researchers call “money wounds” — emotional difficulties stemming from financial challenges that cut to the core of personal well-being.

The study reveals that low self-esteem, compulsive overspending, and shame from past financial mistakes emerge as the most common “money wounds.” The financial stress takes a significant emotional toll. 68% of those experiencing money wounds report that these challenges hold them back from feeling fulfilled and successful.

Many of those with money wounds admit to avoiding their financial troubles during the holidays. This avoidance manifests in various ways: refrain from buying gifts (37%), declining party invitations (33%), and avoid checking their bank account balances (29%).

Perhaps most heartbreaking is the social isolation that follows. 42% of respondents say they’ll become distant from others to avoid experiencing spending pressure. This distancing comes at an emotional cost, with participants reporting feelings of shame, guilt, and loneliness.

There is a glimmer of hope. 61% of respondents are actively trying to embrace the philosophy that “money and spending don’t equal happiness.” However, the road to recovery is long. On average, respondents believe it takes six years for a money wound to heal. More sobering still, many don’t believe financial trauma ever completely resolves.

As the holiday season approaches, the serves as a powerful reminder of the emotional complexity behind financial stress, urging compassion, understanding, and support for those struggling with money-related challenges.

Tarryn Pitt loves scouring thrift shops for treasures, from vintage canning jars to velveteen armchairs. “I’ve been thrifting my whole life — it’s one of my favorite things to do, at least once or twice a week,” she said. “Pretty much all of my home decor came from a thrift store.”

She was browsing in secondhand stores where she lives in Prineville, Oregon, when she got an idea about her upcoming wedding. The average cost of a wedding in the United States is about $33,000 — an amount she said she found extravagant and also created a lot of environmental waste.

“I wanted something that was unique and fit my personality,” said Pitt, 25. “A thrift store wedding dinner seemed like the perfect answer.”

She and her fiancé, Holt Porfily, are inviting 307 guests to their outdoor mountain wedding in Sisters, Oregon. All of the wedding tableware and decorations at the outdoor meal will be thrifted.

“It’s honestly not just about saving money for us, though,” Pitt said. “What we’re doing is super sustainable, and I love giving old things new life.”

So far, she said, she has spent less than $2,000 on her wedding dinnerware and decorations, about half of what she priced out to rent similar items.

In late December, she posted a TikTok video of some of the plates she had found during one of her thrift shop excursions. Pitt said she was shocked when the video received more than 3.6 million views and 2,200 comments.

Pitt said the response has been so positive that she now plans to keep only a few plates after the wedding, and she hopes to rent the rest to other interested brides and grooms. She said she will keep the price low for obvious reasons.

Elevated stress is draining young Americans’ wallets as “doom spending” becomes their go-to coping mechanism.

According to a recent study from Intuit Credit Karma, 60% of Americans are feeling anxious about the state of the world, particularly over the cost of living and inflation. With these concerns taking a toll on mental health, 27% of Americans admit they’re “doom spending” — spending more money despite financial worries. This trend is especially popular among Gen Z (37%) and millennials (39%), with one in four sharing that spending helps them cope with anxiety, stress, and uncertainty.

What’s behind the current spike in this trend? Constant online negativity. More than half of Gen Z (53%) and millennials (49%) say the steady stream of bad news on social media drives them to spend more to relieve stress.

Nearly half (44%) of Americans reported feeling pessimistic about their financial future, and a substantial portion of young people are forgoing savings entirely. This has left many young adults seeing core financial goals, like paying off debt or saving to upgrade their living situation, as far out of reach.

For Christians, financial expert Art Rainer suggests that reprioritizing money is a key place to start:

So, where do we get it wrong? We’re putting our hope for security, our hope for a better future, a hope for a sense of satisfaction and contentment on money. And it gets us into a lot of financial trouble. We get into cycles of discontentment and dissatisfaction. And then of course, we continue to try to get more. And it just never works out. Money in and of itself is not a bad thing. We can use those things for God’s purpose and for His glory.

As 29-year-old Neha Wright checked her mailbox and brought in the latest batch of bills, she realized the moment had finally arrived: Her childhood love of receiving a letter in the mail had officially been replaced with a very adult fear of receiving a letter in the mail.

Neha’s parents recall that as a kid, she would teem with excitement when she got a letter addressed to her and would run to open it. Neha’s mother said, “Most of the time it was something boring like a postcard from a cousin or a school paper. She’d check the mailbox every evening after school if she knew a letter was on the way.”

Now that she’s reached adulthood, seeing a letter in the mail sends a chill down Neha’s spine, and its sort of up in the air whether she will open it at all. She continued, “It’s almost always my electric bill or a notice from my bank, two of the scariest things a girl can receive. I’m pretty sure that if I don’t open it, I can’t be legally held responsible for the contents!”

According to her bank, this is untrue, but when reporters tried to inform Neha of this, she simply closed her eyes, held her hands over her ears, and said, “Lalalalalalala.”

Neha said, “It’s hard to imagine there was once a time where I loved receiving mail, because it meant $20 from my grandparents. Imagine opening mail and gaining money? That must’ve been awesome!”

Neha’s adulthood disdain for mail does not, however, apply to packages, which have retained their childlike wonder. If anything, Neha’s joy at receiving a package has only grown. “Oh, yeah, letters and packages are very different,” Neha continued. “Letters are scary and packages are tiny little glimmers of hope that carry things like clothing and skincare products. I’m super pro-package.”

Possible Preaching Angle:

Obviously, this is a humorous, but not so hypothetical, situation. How many of us overspend during the holidays, or put an expensive trip on our credit card, only to be shocked when the bill arrives whether by mail or email?

The number of Americans carrying a credit card balance is climbing, with many using their credit to cover unexpected or emergency expenses, a new Bankrate report reveals.

The share of credit card holders that carry a balance has increased to 49%—up from 39% in 2021. This is likely due to the increased cost of credit card debt over the past two years. The average interest rate has climbed from an average of 16.45% in 2021 to 24.37% as of March 2024 according to Investopedia.

Of those with credit card debt, 43% say they carry a balance because of an unexpected or emergency expense, most commonly medical bills or car and home repairs. However, financial experts don’t recommend financing these costs with your credit card, if you can help it.

Credit cards tend to have high interest rates compared with other types of loans, which makes them a terrible option for debt financing. This is why experts recommend keeping your outstanding balance at $0 each month, if possible.

Paying only the monthly minimum payment is better than nothing. However, those payments only cover a fraction of the balance owed. The longer you take to pay the balance, the more interest you’ll be charged, since it accrues daily.

A beautiful wedding does not a wonderful marriage make. We know that and yet many couples get drawn into the business of weddings and the price tag can create a burden and stress for years. According to The Knot, the average cost of a wedding in 2022 was $30,000, including the ceremony and reception.

Just for reference, warehouse workers, nursing assistants and shuttle drivers make less than $36,000 a year on average. You also could buy a new car for $30,000 or pay for the cost of tuition, housing, and meal plan at a major university for the same price. There is also a massive cost burden for attendees. According to The Balance it costs individual members of a bridal party more than $700 to attend a wedding, including travel, accommodations, and clothing.

But, hey, you can always read up on the dozens of articles highlighting how to save money when planning a wedding … such as “open a new savings account earmarked just for the wedding.” Is that what we have allowed the industry to push us toward? Opening a new savings account just to finance a wedding?

Possible Preaching Angle:

Maybe it is time for us all to rethink our cultural obsession with elaborate weddings – and the staggering financial behemoth it has created.

For some shoppers, the upcoming holiday season may lead to piling on more debt. About 25% of Americans are still paying off holiday debt from 2022, according to WalletHub.

But those already carrying a balance could find themselves sinking further into the red if they don’t get a handle on their credit card debt. “If you’re in a hole, stop digging,” says Ted Rossman, Bankrate’s senior industry analyst.

One reason you may want to avoid racking up more debt is that higher interest rates are making it more expensive to pay down. As of November, the average credit card interest rate has risen from around 16% to nearly 21%. This is due to the Federal Reserve raising interest rates in March 2020 in an effort to combat inflation.

A higher interest rate means it could take longer and be more expensive to pay down your credit card debt. Rossman says, “Even a more modest $1,000 balance (from last year’s holiday gifts, perhaps) would keep someone in debt for 40 months and cost them $390 in interest if they only make minimum payments at [the current average rate of] 20.72%.”

Add-on fees are driving consumers crazy. From restaurants and hotels to concerts and food delivery, we are increasingly shown a low price online, only to click through and find a range of fees that yield a much higher price at checkout.

The term drip pricing was popularized by a 2012 Federal Trade Commission conference. Its spread is associated with the proliferation of airline fees after the Sept. 11, 2001, terrorist attacks. Yet an example of the phenomenon that long predates 2001 is stores’ practice of listing goods without the sales tax, which gets added at checkout.

Why not include the sales tax with the sticker price? One study from 2019 showed consumers punish that sort of transparency. A grocery store let the authors tag some products with the familiar pretax price and some with the total price including tax. For example, a hair brush’s price tag showed $5.79 before tax, and beneath that $6.22 with the tax. Sales volume dropped for products with price tags that included the tax than a control group without the tax.

This isn’t because shoppers didn’t know the tax rate or which items were taxable. In fact, 75% of shoppers surveyed knew the sales tax within 0.5 percentage point, and most knew what goods were taxable. So, the tax-inclusive price tag didn’t give them new information; it was just that transparent reminders turned some people off.

Possible Preaching Angle:

Jesus never practiced “drip pricing.” He never hid the total costs for following him. It may turn some people off, but he always put the full cost upfront.

When Gustavo Alvarez lost his home in Los Angeles, there was a bitter irony that added insult to his travail. The fire that consumed his home started in a homeless encampment behind his home. Initially, insurance payments made it possible for Alvarez to move his family into an apartment while the home could be rebuilt. But the temporary housing benefits only lasted six months, which left Alvarez with nowhere near enough time or money to complete his home renovation.

Alvarez told The Los Angeles Times, “We are saving up to fix the house. But the $1,400 of rent for our temporary home has been an added expense. My wife is working at a clothing store to make up for some of it … You work day and night for years to build something and it is gone in a matter of hours.”

When Jessica Lawson read Alvarez’ newspaper story, she was moved to act. Lawson is a disaster recovery program manager for Habitat for Humanity in the greater LA area, so she reached out. Lawson said, “I knew we had the power to help. Wouldn’t it be cool if we could actually help the family?”

And help they did. Because of Lawson’s intervention, Habitat was able to offer Alvarez a loan with highly favorable terms that would help him finish his home. After reviewing damage estimates from a general contractor, the work was done quickly, enabling Alvarez to move back in a few months’ time.

Most fans of an animated series enjoy participating in the lore of the show; whether through cosplaying, conventions, T-shirts, or other swag, there is a cost to fandom. For NYU social work student Jennifer Bryant, however, the cost became prohibitive.

That’s because Bryant’s four-year-old son Noah, a fan of the animated franchise SpongeBob Squarepants, used his mom’s smartphone to order a staggering amount of SpongeBob-branded popsicles. The total bill for 51 cases worth (or 918 individual frozen treats) was $2,618.85. Because it’s a perishable food, Amazon said the order was non-refundable.

After hearing about her predicament, one of Bryant’s friends set up a GoFundMe page to get some help paying off the surprise expense that she could not afford. And when word got around about Bryant, a mom of three, working, and going to school full-time, she received an outpouring of financial support.

It seems that people were not only attracted to the humorous novelty of the story, but receptive to the special needs of children on the autism spectrum, as Noah is. Not only did donations meet the initial goal of covering the full cost of the Amazon bill, but almost ten times more.

On the GoFundMe page, Jennifer included this note of gratitude:

Thank you SO much for your mind-blowing generosity and support. We’re so grateful to have made back the $2.618.85 in a mere 24 hours (!!!). As a parent to a child living with Autism Spectrum Disorder, all additional donations will go towards Noah’s education and additional supports. We cannot thank you enough. Truly.

Possible Preaching Angle:

Parents exist to give structure and limits for children to offset their boundless curiosity and enthusiasm. However, even the best parents have moments of trial and struggle. One of the best expressions of Christian community is when members of the body can support parents in their times of need, so that their children can continue to be raised in a healthy manner.

It seemed like Dan Price had it all. He was the CEO of a successful business with a million-dollar salary and a gorgeous home overlooking Puget Sound outside Seattle, Washington. But then he noticed two things: first, more money wasn’t making him any happier. “There’s some number where, when you hit it, the money over that just doesn’t make your life much better.” And secondly, his employees were struggling. Cost-of-living in Seattle is one of the highest in the nation. So, Dan did something unthinkable: in 2015, he cut his million-dollar salary down 90% in order to raise the minimum wage of his workers to $70,000.

The effect was immediate: More than 10% of employees have purchased a house for the first time. Personal individual 401k contributions have more than doubled, and more than 70% of employees with debt have been able to pay some of it down. Other surprising things happened as well: The number of babies born to employees in the company increased from 0-1 per year to roughly 6-7 per year. “The worries of not being able to pay for something have disappeared,” wrote one employee when asked how Gravity’s wage policy has affected their life. “I don’t have to make a choice between fuel or groceries. I don’t have to worry about an unexpected emergency.”

And what happened to his company? It grew from 120 employees to more than 200. They even opened a second location in Boise, Idaho and instituting the same minimum wage there as well.

Dan said, “I’m the same age as Mark Zuckerberg and I have dark moments where I think, ‘I want to be just as rich as Mark Zuckerberg and I want to compete with him to be on the Forbes list. And I want to be on the cover of Time magazine, making lots of money.’ All these greedy things are tempting. But my life is so much better.”