By Ilana Zhitomirsky 

Peer-edited by Samantha Sirota 

Published 12/30/25

The Hidden Cost of Holidays

It’s December, which comes with parties, social gatherings, and decorations. Everywhere you look, there seems to be a place to open your wallet: buying gifts for loved ones, treats for friends, or the simple excuse of “just because it’s the holidays”. However, by the time January rolls around, many find themselves with an empty card, feeling anxious about the money they’ve spent. Countless teens and adults fall victim to overconsumption during the holidays, but not purely because they're bad at budgeting. The holiday season indulges us to spend, and it tugs on emotional strings, prompting us to hit “Checkout”.

The Spending Warmup

Before the actual holiday chaos begins, the spending season subtly enters with Black Friday and Cyber Monday. Known for their advertising strategies, these sales tempt customers with flashy lines like “deals you can’t miss”, “last chance to save big”, and “limited time offer”. Scarcity messaging creates a sense of urgency and necessity, prompting us to buy more now. The idea of a limited sale justifies the big total at the end of a receipt, and while this may sound like it’s smart spending, it’s actually the rationalization of an impulsive buy.  

To compensate for the overindulgence in clothes, goods, and gifts, Giving Tuesday comes about to prompt spenders to shift their focus outward. Although it does create generosity, it subconsciously intertwines spending and kindness. It creates the false impression that spending money is the “right” way to show you care. These days and sales aren’t merely one-time occasions. They subtly train your brain to view spending as a part of the holiday season and festivities. When the holidays arrive, the average person is already in the habit and mindset of spending. 

The Holidays - Where Overconsumption Thrives

When the already set mindset of spending clashes with tradition, festivities, and social pressures, overconsumption reaches its peak. By understanding the common pressures that nudge us to buy, we can handle budgeting for the holiday season without being swayed by feelings or stressors.

Gifts

Teens face great social pressures to match the price and effort of their families or friends. When the fear of disappointing others collides with social media, it often makes things like making a gift(which is more than enough) or spending less feel like not enough.  As a result, the cost of gifts can quickly escalate from a $30 limit to a $100 budget, and so on.

Food, Events, Extras

Aside from gifts, the holidays come with parties to attend, food to prepare, and fun treats to buy. We often justify overspending on purchases by saying it’s for “a special occasion”, but, more often than not, this leaves our fridge overflowing and our bank accounts vacant.

Emotional Spending

The desire to have “the perfect holiday” combined with nostalgia and emotions is often a subtle but crucial aspect of overspending. Teens still learning how to handle impulse control and budgeting are even more vulnerable to being swayed by their emotions.

Navigating Overspending

Although overconsumption during the holidays seems impossible, there are many tips both teens and adults can follow to keep overspending at bay.

Mindset Shifts

• Understand that spending ≠ caring. A thoughtful gift can go much further than an overpriced one

• Social media is often fake. Presence and effort are more important than flashy gifts or Instagram posts

Practical Tips

• Set a realistic budget for the holiday and stick with it, even if something more exciting (and more expensive) comes along

• If exchanging gifts in a group setting, set a cap price for everyone so that there isn’t an imbalance between the prices of gifts

• Don’t indulge in all the social media or sales you see, since good discounts don’t always mean you’re saving

• Plan gifts in advance, so you aren’t stuck with the urgent pressure of gifting a show-stopping present last minute

What The Holidays Are Really About

Overconsumption is real, emotional, and social, but the holidays are about joy and not expenses. Although overspending is a common struggle, it doesn’t have to take over the season. By understanding what the common stressors are and applying useful tips, both teens and adults can find ways to remember what the holidays are really about and stay away from overspending. Besides, the best memories aren’t wrapped in bows or ribbons. They’re shared with family and loved ones.