As the holiday season approaches, many of us start to feel the familiar twinge of anxiety or even dread. It's no secret that holiday stress hits Americans from seemingly every angle all at once. In addition to our normal responsibilities, it takes considerable extra effort to make the triple crown of Thanksgiving, Hanukkah/Christmas/Kwanzaa, and New Year's Eve a success. From finding the perfect gifts for everyone on our lists to planning meals to organizing travel, the holiday to-do lists can seem endless.
While this time of year can be stressful for anyone, Asset Limited, Income Constrained, Employed (ALICE) households face a unique and heightened burden. For these households, the joy of the holidays can easily be drowned out by financial stress and all the ways it can be detrimental to overall wellness. If you count yourself among them, here’s how you can get relief this holiday season.
Why are the Holidays So Stressful for ALICE Families?
The demands of the holiday season can be overwhelming for ALICE households because they cause acute financial stress in households. ALICE earners are already walking a tightrope, struggling to cover basic needs, like housing, food, and health care, throughout the year. The added pressure of holiday expenses can make an already precarious situation downright punishing. For these households, normal holiday stressors can be compounded by:
- Rising costs. The cost of living continues to rise each year — often outpacing job pay rates — which means that despite giving work their all, ALICE households can find it progressively harder to stretch their limited budgets. During the holidays, this financial strain is magnified because of the cost of American traditions. Many households find themselves choosing between buying holiday gifts or paying for necessities, including prescription drugs.
- Social pressure. The holidays come with social expectations for extensive gift-giving not just within the household but also social circles, preparing not just meals but special feasts, and putting up not just some but an abundance of decorations. This pressure can be painfully intensified for ALICE households, who may feel inadequate if they can’t go all in on the seemingly perfect holiday experience for their children and other people.
- Dangers of debt and long-term consequences. The pressure to meet holiday spending expectations can cause families to incur or worsen debt, whether it’s credit card debt or the potentially treacherous buy now, pay later loans available at online checkouts. A 2023 holiday survey found that 30% of participants who planned to take on holiday debt also planned to take out short-term loans, many of which come with exorbitant interest rates that can plunge families into even worse financial straits.
How Does Financial Stress Affect Your Health?
The budgetary worries of the holiday season can take an added and significant toll on the mental and physical health of ALICE households that can have serious long-term consequences.
Mental Health Challenges
First, there’s the fact that planning Thanksgiving dinner on a tight budget and Christmas shopping on a budget can be far less than joyful tasks. They may not feel in line with the inspired, spontaneous generosity American culture idealizes, especially for parents, since children don’t understand shopping challenges and can’t fully appreciate the efforts of their frugal parents. The search for budget-friendly holiday gifts and trimmings can force shoppers to unjustly feel miserly, calculating, and overburdened during the holiday season itself.
In the long run, chronic stress — which doesn’t go away after the holidays, particularly with holiday debt — can lead to anxiety, depression, and other chronic mental health disorders. If these conditions are untreated, each new holiday season can trigger or worsen them.
Physical Health Risks
The physical effects of stress are well-documented and can include headaches, high blood pressure, and weakened immune systems, among other symptoms. Holiday constraints can lead to poor health outcomes, as parents and other household earners may neglect their own health needs while trying to provide for others. This can result in a decline in overall well-being, making it even harder to cope with the demands of daily life.
The holiday season is meant to be a time of joy and togetherness, but for ALICE households, it can be a time of significant stress and hardship. If you’re one of them, consider researching holiday stress management resources ahead of the season and seek out community-based social services in your area for additional support.
By recognizing the additional stress that ALICE households face, we can help create a more inclusive holiday season — one that truly embodies the spirit of giving and compassion.
Stress Less This Holiday Season With United Way of York County
United Way of York County in Pennsylvania assists hardworking households on their journey toward financial stability. In order to meet the needs of the ALICE population, we are embarking on an issue-focused strategy to create transformational impact for workers. We are focusing on two key barriers: child care and transportation.
We offer many other resources through PA 211, a free, confidential health and human services information and referral hotline. Learn about how to use PA 211 to access resources such as food, clothing, and mental health assistance. Contact us today to get the services you need for a financially successful future!
With one donation, you can help your ALICE neighbors and friends. Gifts to the United Way of York County Impact Fund are dollars that stay in York County and impact lives where you live and work. Please consider giving today!