Christmas Economics: Is Overspending Tradition… or Just Bad Financial Habits?

[AmaGold70]

It has been a long year and everyone has been doing all they can to survive each passing day and December is the last month of the year and it comes with holidays that means resting season after all the hard work through out the year in good health so spending money during these festive season should be a tradition but it becomes a bad financial habits if you overspend and even buy things you can't afford at the moment and thereby putting yourself in debt over a season that will still pass and hard work continues by new year. I enjoy Christmas and I make sure to celebrate it well but I always know where to draw the line so that I won't be in debts and I never try to empress anyone during this season.

[abhiseshakana]

It has been a long year and everyone has been doing all they can to survive each passing day and December is the last month of the year and it comes with holidays that means resting season after all the hard work through out the year in good health so spending money during these festive season should be a tradition but it becomes a bad financial habits if you overspend and even buy things you can't afford at the moment and thereby putting yourself in debt over a season that will still pass and hard work continues by new year. I enjoy Christmas and I make sure to celebrate it well but I always know where to draw the line so that I won't be in debts and I never try to empress anyone during this season.

In my country with muslim majority demography, days until Ied also has same tradition like Christmas, demand for everything increase significantly, especially for food and its component, clothes, hampers and transportation, even labor law requires company must give THR (Tunjangan Hari raya = Ied holiday allowance) with minimum amount one month salary for all employees whis has been worked for 12 month.. Ied also the longest holiday in my country and almost all  family return back to their hometown to celebrate Ied with big family.

As a matter of fact, Ied / Christmas gift is a desire not a  necessity. Common social tradition make pressure and change our mind as if a necessity. The flexing phenomena and showing achievement on social media also make some of us buy expensive give only to get a good image and social recognition. For me, my first financial principles, shopping for function based on our capacities not other people expectation.

Such expenses must be posted on anual budged or well prepared, it will be wrong if we take it from regular monthly expenses, emergency fund especially using debt. We can post it on sinking fund post or entertainment post. For in/out cashflow management, we can spare it every month, (strating one month after ied/Christmas designated for next Ied/Christmas holiday festive). On Christmas case, i hope none will not fall again on practice do impulsive spending on december, panic paying new debt on january and taking new loan on February to closed January debt. It is truly sick financial condition and can not be tolerated.

[YOSHIE]

Let’s talk real economics, not holiday fantasies.
Where do you draw the line when Christmas spending threatens your financial stability?

In fact, the local economy is better when Christmas or New Year arrives, many people in my area sell for Christmas purposes, I also see many people who have never sold before, When Christmas arrives they gain abundant fortune, Christmas is the day when the economy turns around and improves the economy in general.

In terms of gifts, people have worked for 11 months and earned millions of dollars, there is no harm in spending a little of the money they have earned to share with their family, besides the gift is given to their beloved family, such as mother, children, wife, siblings. etc.

[whiteblue]

On any holiday the local economy will grow well and it adds a good economic turnover than on other days because people will shop and everyone celebrates, it's good for economic growth, buying goods/services around our neighborhood is the same as helping the merchants to be able to celebrate with their families indirectly and we can also celebrate with the families of the goods we buy to make it more festive, so why hold money in your wallet if it's a good thing.

Money management is a must, don't drain your savings to zero or minus, it's suicide for the next year.

[Fortify]

Every December, the same cycle repeats itself.
People complain about inflation, low income, debt, and how hard life is — then Christmas arrives and suddenly budgets disappear.

We buy gifts we can’t afford.
We chase the latest thing just to avoid looking “cheap.”

We spend today and promise ourselves we’ll recover in January… knowing very well January comes with bills, rent, school fees, and regret.

So let’s be honest:

• Do gifts really measure love, or just social pressure?
• Is it smart to go broke just to make one day feel special?
• Why do we feel guilty giving what we can afford instead of what’s expected?
• Should Christmas be about generosity within limits, or sacrifice at all costs?
• What’s your personal spending limit — and do you actually respect it?

If buying the latest phone, clothes, or gadgets means starting the new year stressed and broke… was it really worth it?

Let’s talk real economics, not holiday fantasies.
Where do you draw the line when Christmas spending threatens your financial stability?

  Merry Christmas 2025.

From what I've seen in life, it is mainly the media and social norms pressure that is hardest for the younger generations to ignore - yet they are the ones with the least to give. It can take a while for some people to figure out a career or even embed themselves in a reasonably stable job, but they might have spent a fair bit of money (even creating debt) up to that point. You should simply give what you can afford and not feel any sort of pressure to go beyond that, because people will be happy enough just to be in your company which can be a reward in itself - you don't realize how much grandparents love having kids and grandkids around, who are happy to spend on them without receiving anything in return.

[B-BossMan]

It's actually something we don't need to worry ourselves about, expecialy the festival period, I know many people today who only waited for only this special day to spend more money than the usual days, however people left themselves on much debts just to meet up with the activities of that very day, not thinking that the day will pass and left them on debts they couldn't expect, although there are some people that don’t lusguard in financial planning no matter how hard the economy is, they can meet up with thier targets. So the best thing is to feel comfortable or to meet up with all these planning activities is by planning yourself well in order to avoid financial challenges, invest on a valuable assets or cryptocurrency and enjoy the profits in the future.

[beerlover]

This is pretty common in holiday seasons. We have to buy gifts for our loved ones which is almost unavoidable. Some of us might save some money to buy gifts while some might just pour everything they have thinking to recover in the coming months. I am among those who prefer spending money from my savings instead of the working capital. Buying gifts is unavoidable. It is an expression of love and also tradition for most. So, this will continue for decades or maybe centuries. Yes, I agree that many of us overspend on these gifts just to look good. This is something that is not really required. We can only buy gifts which we can really afford.

I will allocate a budget for gifting and will never cross my limit no matter what. This will keep me and my family financially stable in holiday seasons, and we mostly will prefer buying gifts which are really useful instead of spending on luxuries.

[allthebitandbobs]

Who does not spend here during Christmas? I guess everyone does, and if you have prepared for it working overtime for the past 11 months, then its not an act of overspending. You just spend because you have a good budget for it intended just for Christmas.

However, if you have been tight throughout the year, and even in Christmas your budget is still limited, then there's no reason to spend much. Spend based on what you can afford, that way you won't be compromising your funds even if its Christmas.

Yes, majority of people will spend during Christmas. For me, I will consider working hard for the entire year and will prefer enjoying or giving myself a break at the end of year. I will mostly go on a vacation, spend on pampering myself and my family. Buying gifts has turned out to be a must which has been followed since ages now. I do love to follow the tradition and buying gifts for my loved ones makes them happy. Seeing them happy makes me happy as well. Gifting during Christmas or holiday season is nothing but spreading joy and happiness.

We also can't deny the fact that many people will start buying expensive gifts just to look good and they will mostly wind up overspending. They do not really care about the feelings but just want to look wealthy so they will spend thousands of dollars. What will be the end result of this? These people will wind up being broke in the new year.

[Jatiluhung]

Not only at Christmas but also on other holidays. But we sometimes prepare for them a year in advance, don't we?

I spend more money first during the New Year holidays and second during Eid al-Fitr. For Christians, it's definitely Christmas. However, companies usually give extra pay during holidays, which means we don't even have to spend our regular salary. At least that's how it is at my workplace. I don't know about other workplaces. But at least once or twice a year, it's okay to treat ourselves and let go of the restrictions we've had for over a year. Besides, we must have already made a budget for that.

[sunsilk]

IMO, someone who's got a bad financial habits won't just do it during the Christmas season. But for all over the year, you'd see them spending to things that they don't really need.

Spending on matters that degrade quickly even they don't use it. We can spend to anything we want but being thrifty with our finances is very important nowadays.

No one is there to come to save us when we're drowning in financial responsibilities.

[acener]

IMO we tend to spend more in Christmas/New year since we have our bonus on those month compare to other holidays, not to mention that we saved out money through the months to enjoy it with our family.
We work hard whole year to enjoy that vacation with our family to celebrate, make memories and cherish it.
We just need to stick with what we could afford, don't take loan just to celebrate or be generous with gifts if you couldn't afford it then don't buy it, don't do it.
There are some people who would go overboard just to celebrate, they would rather take loan just to have a grand celebration or give some expensive gifts, this kind of act is what I would consider as Bad Financial Habits, it isn't just for Christmas and New year but also for other celebrations such as Birthdays and Weddings.

[JiiBs]

IMO, someone who's got a bad financial habits won't just do it during the Christmas season. But for all over the year, you'd see them spending to things that they don't really need.

Spending on matters that degrade quickly even they don't use it. We can spend to anything we want but being thrifty with our finances is very important nowadays.

People will always tend to spend money somehow or on something and at times, we might find it to be a lot more distressing on where we choose to spend this money at the end of the day.
Having to celebrate Christmas as a tradition of belief it a bad idea or a bad spending habit but, trying to be excessive just to meet up with other persons is where it gets bad.

No one is there to come to save us when we're drowning in financial responsibilities.

That’s the point, this is the reason why, one has to be conscious of their spending habits. It could easily go wrong and you would find yourself at the mercy of an economy that is constantly changing against you.

[tabas]

I'll not make myself broke just to make people happy. That's the expense that I get for making someone's day? I cannot do that, we can both make our days without having either of us to go broke. And how? that's by simplicity. We don't need fancy gifts or whatnot. What we need is connection from these people and they'll feel the same if you ask them from time to time on how they are doing. This tradition's cycle has to break by the new generation now. We can still give gifts to the people we love but we don't have to sacrifice our financial standing for that.

[sunsilk]

IMO, someone who's got a bad financial habits won't just do it during the Christmas season. But for all over the year, you'd see them spending to things that they don't really need.

Spending on matters that degrade quickly even they don't use it. We can spend to anything we want but being thrifty with our finances is very important nowadays.

People will always tend to spend money somehow or on something and at times, we might find it to be a lot more distressing on where we choose to spend this money at the end of the day.
Having to celebrate Christmas as a tradition of belief it a bad idea or a bad spending habit but, trying to be excessive just to meet up with other persons is where it gets bad.

I have no problem and nothing against people who celebrate Christmas with a belief. It's not a bad idea.

But it only becomes a bad thing when the result of that tradition and celebration is bad on you. The bad thing about it is when it is making you financially irresponsible.

No one is there to come to save us when we're drowning in financial responsibilities.

That’s the point, this is the reason why, one has to be conscious of their spending habits. It could easily go wrong and you would find yourself at the mercy of an economy that is constantly changing against you.

I have read a lot of stories that they're in debt because of how they'd like to make the celebration feel special.

And that's why they spend here and there but they cannot afford it. They can still celebrate it but they need to allot budget that's not going to take out their savings and put them in debt.

[gibrab16]

IMO, someone who's got a bad financial habits won't just do it during the Christmas season. But for all over the year, you'd see them spending to things that they don't really need.

Spending on matters that degrade quickly even they don't use it. We can spend to anything we want but being thrifty with our finances is very important nowadays.

People will always tend to spend money somehow or on something and at times, we might find it to be a lot more distressing on where we choose to spend this money at the end of the day.
Having to celebrate Christmas as a tradition of belief it a bad idea or a bad spending habit but, trying to be excessive just to meet up with other persons is where it gets bad.

I have no problem and nothing against people who celebrate Christmas with a belief. It's not a bad idea.

But it only becomes a bad thing when the result of that tradition and celebration is bad on you. The bad thing about it is when it is making you financially irresponsible.

No one is there to come to save us when we're drowning in financial responsibilities.

That’s the point, this is the reason why, one has to be conscious of their spending habits. It could easily go wrong and you would find yourself at the mercy of an economy that is constantly changing against you.

I have read a lot of stories that they're in debt because of how they'd like to make the celebration feel special.

And that's why they spend here and there but they cannot afford it. They can still celebrate it but they need to allot budget that's not going to take out their savings and put them in debt.

You can still celebrate and enjoy the moment without blowing money you don’t have. It’s all about setting a budget you can actually afford, not emptying your savings or putting yourself in debt just for a few days of hype. A good celebration shouldn’t come with financial stress afterward.

[X-ray]

Just bad financial habits honestly. You can go through christmas without overspending at all but at the same time some people like to reward themselves after working a hard work for the entire year.

Even though it's just overspending, honestly I don't really think it's a bad thing if you don't overspend that much. It could get the economy going as well since everybody don't just hoard their money all year long. Moreover, people actually are saving money for christmas not just suddenly overspend.

It's one of those thing that is tolerated because you don't get to see christmas everyday so why not spend some good money to make it awesome.

[iv4n]

So let’s be honest:

Well, it's just another day... If you have some money & free time, spend it on people & things you like. It's the combination that should describe holidays, and every day when you have money in your pocket and free time is a holiday. Don't spend them because you must, or because of tradition, and later regret it... Do it if you like it, and whether you will spend more or less, it doesn't really matter... the only important thing is not to do things you will regret later.

[Hypnotizer]

“Excessive spending “ is the financial mistake we make during this festive season, but it’s good to spend on things and people you love but not excessively. When you know how to keep your finances balanced then buying gift and spending on loved ones in a way that wouldn’t cause burden to your finances isn’t a bad thing. Atleast show love during the festive season, live is too short _{but don’t take debt to show love.}

But some people usually have bad financial habit on a normal, and so they overspend during festive season which is somewhat bad for their finances, there are many ways to be happy during the festive period without overspending but they choose overspend rather than other alternatives.

[lornadane]

“Excessive spending “ is the financial mistake we make during this festive season, but it’s good to spend on things and people you love but not excessively. When you know how to keep your finances balanced then buying gift and spending on loved ones in a way that wouldn’t cause burden to your finances isn’t a bad thing. Atleast show love during the festive season, live is too short _{but don’t take debt to show love.}

But some people usually have bad financial habit on a normal, and so they overspend during festive season which is somewhat bad for their finances, there are many ways to be happy during the festive period without overspending but they choose overspend rather than other alternatives.

I agree. Spending during the festive season isn’t the problem — excessive spending is. It’s good to show love and enjoy the moment, but it shouldn’t come at the cost of your financial stability. If you can balance your finances, buying gifts and spending on loved ones in a way you can afford is perfectly fine.
The issue is that some people already have poor financial habits, and the festive season just makes it worse. There are plenty of ways to enjoy the holidays without overspending, but many still choose to go all out and end up in debt. Love doesn’t need loans or financial stress attached to it.

[lornadane]

“Excessive spending “ is the financial mistake we make during this festive season, but it’s good to spend on things and people you love but not excessively. When you know how to keep your finances balanced then buying gift and spending on loved ones in a way that wouldn’t cause burden to your finances isn’t a bad thing. Atleast show love during the festive season, live is too short _{but don’t take debt to show love.}

But some people usually have bad financial habit on a normal, and so they overspend during festive season which is somewhat bad for their finances, there are many ways to be happy during the festive period without overspending but they choose overspend rather than other alternatives.

I agree. Spending during the festive season isn’t the problem — excessive spending is. It’s good to show love and enjoy the moment, but it shouldn’t come at the cost of your financial stability. If you can balance your finances, buying gifts and spending on loved ones in a way you can afford is perfectly fine.
The issue is that some people already have poor financial habits, and the festive season just makes it worse. There are plenty of ways to enjoy the holidays without overspending, but many still choose to go all out and end up in debt. Love doesn’t need loans or financial stress attached to it.

I agree with you. Depending entirely on anyone — even the government — isn’t a solid plan. Support can help, but it shouldn’t be what our survival depends on. At the end of the day, we all have to stand on our own two feet.
We should work toward what we want and take responsibility for our own future. Help is fine when it comes, but relying on it is risky. Our future is ultimately shaped by the choices we make ourselves.