Keeping on top of finances can alleviate festive-season stress

With the festive season fast approaching, it is worth remembering that it is not always – or even often – a chance to relax after a difficult and uncertain year.

As the world navigates a high-inflation, high-cost-of-living and low-growth environment, our personal finances are under significant pressure. And this leads to uncertainty, anxiety and stress.

According to Denise Neethling, head of marketing at Earned Wage Access (EWA) fintech, Paymenow for many people the joy of holidays and spending time with family is overshadowed by worry about the costs of travel, gifts and impending back-to-school expenses.

“The period itself carries additional stresses, including attempting to meet familial expectations, travel and unfamiliar social environments,” she said.

Research by numerous companies shows that people’s mental health during the festive season is negatively affected by financial concerns.

In the UK, a recent poll found that one in 10 adults felt hopeless about their financial circumstances and more than a third felt anxious.

This is exacerbated by the festive period. A quarter of the UK population finds Christmas the most challenging period of the year and 54% are worried about the mental health of someone they know at Christmas.

A study published in the International Journal of Environmental Research and Public Health found that South African suicide rates peaked around the summer holidays. This takes place, especially among those living in less urbanised areas and in lower socioeconomic categories, which the researchers ascribed to changes in social situations and the influence of the festive season.

A crucial step to reducing stress over the festive season is gaining control over your finances. Employers can step in and help their employees by running financial literacy programmes that will assist them in planning for the holiday seasons – drawing up budgets, putting savings plans in place, and ensuring access to emergency funds.

In addition to financial education, employers who feel responsible for their staff as they leave for the December holidays and are concerned about their well being over this period can empower their employees through responsible earned wage access (EWA).

EWA can give employees more control over their finances, allow them to plan more effectively and reduce their stress and anxiety.

In Paymenow’s most recent impact report, 95% of Paymenow users reported feeling more in control of their finances since using the platform and the same proportion reported reduced stress levels related to their finances. Four out of five respondents reported their ability to save had improved, allowing them to plan more effectively.

Also Read: Teaching environmentally-friendly financial decisions

Also Read: Financial empowerment for women