Wellbeing Hub

Karen Larsen

Social Worker and Care Coordinator

The holiday season is upon us. While it can be fun filled and joyous, it can also come with financial stress that lasts far beyond December. Money spent on gifts, travel, meals, and entertainment can add up quickly. With credit card interest rates around 27%, and the average American household carrying a credit card balance over $6,000, adding to, or creating new debt can be daunting. Buy now, pay later plans (BNPL– like Klarna or Affirm) may be tempting. But remember that with BNPL, you are still accruing debt, and late fees and interest may apply if you miss a payment. While most people have some form of debt, like a mortgage or student loans, too much debt on credit cards and installment loans can be crippling financially and emotionally.

You can still have an enjoyable holiday season while reigning in the spending.

Some quick tips for avoiding or minimizing holiday debt:

• Set a limit for spending and stick to it (yes, a budget).
• Do group gifts or a Yankee Swap instead of individual presents.
• Shop sales well in advance of the holidays and put the gifts away.
• Give the gift of time, or something homemade. Offer to babysit or make a meal instead of buying a present.
• Make a list. This avoids last minute shopping for a forgotten relative or friend and spending more than you anticipated.
• Look for free or low-cost holiday activities, activities like tree lightings, community concerts, etc.
• Set price limits on the gifts you plan to give.

Financial concerns can create emotional stress, whether they are related to holiday spending or other financial areas. Getting financial advice may be a way to address the financial issues, while coaching or counseling can address the emotional reactions.

Members of Local 4 have access to financial advisory services, whether they are related to holiday debt or other financial issues. Through Fidelity Investments you can meet with a Workplace Financial Advisor to discuss your financial needs. Contact Fidelity at 800-642-7131 or schedule an appointment online at fidelity.com/schedule. See our Featured Partner below, CAPTRUST, to see how they can help with budgeting, debt, credit cards and other financial concerns.

Our Employee Assistance Program, Lyra Health, offers counseling and coaching for many conditions, including emotional reactions to financial stress. See their article: Coping with Financial Anxiety. Connect with Lyra to find a therapist or coach at 844-926-2482 or local4funds.lyrahealth.com.