California Holiday Financial Wellbeing Guide & Toolkit
The holiday season brings warmth, celebration, and time with loved ones, but it can also introduce financial stress, especially in California, where the cost of living is notably high. As a financial therapist, I understand the pressure to make the holidays “perfect” often leads to overspending, emotional spending, and financial anxiety. That’s why I created the California Holiday Financial Wellbeing Guide & Toolkit —a resource to help you navigate the holiday season with financial clarity and emotional balance. This toolkit is designed to help you create a holiday budget that aligns with your values, manage emotional spending triggers, set realistic expectations, and approach the season with intentionality. Whether hosting gatherings, buying gifts, or traveling, this guide will empower you to embrace a meaningful holiday experience without sacrificing your financial wellbeing.
Emotional Holiday Spending Awareness
Understanding the link between emotions and spending
The holiday season can evoke a wide range of emotions, from happiness and excitement to stress and sadness. It's important to notice and acknowledge these feelings before planning your budget. For example, I wanted to decorate for the Diwali holiday as I resonate with light equaling hope and goodness. It’s like the neurons in my brain light up and I feel excited to make the experience happen. However, I noticed this excitement brought me to Amazon where I was scrolling and adding to my cart varied lighting and candle options. The American Holiday, Thanksgiving, is also coming up. For me, this time evokes excitement yet also anxiety around gathering, visiting, and eating! Immediately I want to buy all the things to make it a festive experience, decorations, nice wine, and candles. It is important to notice how emotions can ignite potential triggers for overspending.
Understanding emotions is key to making mindful spending choices, as our feelings often drive our financial behaviors. Emotions like stress, joy, guilt, or anxiety can lead us to spend impulsively or in ways that don’t align with our long-term goals or values. By becoming aware of our emotional triggers—such as the urge to shop when stressed or overspend to feel connected—we gain the power to pause, reflect, and make spending decisions that support our true needs and priorities. This emotional awareness is a cornerstone of financial wellness, helping us to maintain balance and intention in our financial lives.
Noticing and Naming Holiday Emotions
Noticing and naming holiday emotions is a powerful practice that helps bring awareness and help us navigate the often overwhelming feelings this season can evoke. By intentionally identifying these feelings—such as “I feel excited to buy gifts,” or “I’m anxious about family gatherings”—we create a moment of pause to understand what drives our actions. Naming emotions gives us a sense of control and allows us to make mindful choices that align with our values rather than reacting impulsively. This awareness not only supports healthier financial decisions but also fosters emotional resilience, helping us navigate the season with greater peace and balance. If you want to practice noticing and naming your holiday emotions, download your free Holiday Emotions Awareness Tool.
Setting Realistic Expectations
It's common for people to feel pressured to create the "perfect" holiday experience. However, this pursuit of perfection can lead to overspending and emotional exhaustion. One way to create awareness and navigate these tendencies is to consider last year’s expenses… did the holidays leave you in debt, or did you feel that they were underfunded or just right? We often forget the holidays are a multi-month experience. Costs for outfits, decorations, food, and gifts can quickly add up. Planning for the holidays and the experiences you would like to have will help you to set realistic expectations.
Taming Holiday Spending: Tools for Success
Identifying Financial Goals
To promote financial wellbeing over the holiday season in California, set clear financial goals. These goals should reflect your values and priorities. By understanding your financial limits and desired outcomes, you can create a budget that aligns with your emotional and financial wellbeing.
Creating a Saving and Spending Plan
A holiday saving and spending plan aka budget should include all potential expenses, from gifts and decorations to travel, food, festive events, and entertainment. The key components of a holiday budget should include:
Income Assessment
Review your income sources for the season, including bonuses, savings, and any additional funds.
Expense Categories
Categorize holiday expenses into areas such as gifts, food, dining in and dining out, travel, decorations, and charitable giving.
Allocating Funds
Determine how much money to allocate to each expense category, ensuring that it aligns with your financial goals.
Tracking Spending
Track your spending throughout the season to stay on budget.
Ready to get started on your holiday budget, download Your Free Holiday Budget Template.
Values-Based Spending
In California, where the cost of living is one of the highest in the country, values-based spending is especially essential. The holiday season can bring unique financial pressures, from costly travel and high-end gatherings to gift expectations. By prioritizing values-based spending, Californians can focus on what truly matters to them—whether that’s quality time with family, meaningful experiences, or simply reducing financial stress. This approach prevents overspending in a state where costs can quickly escalate and allows for holiday choices that support long-term financial wellbeing. Embracing values-based spending in California helps create a holiday season that is financially sustainable and deeply fulfilling, keeping both wallet and wellbeing in mind. If you want more info and context on values-based spending and saving, check out the following blog posts. Or, clarify your values with this Holiday Values-Based Spending Tool.
Embracing Creative Solutions
Explore creative and cost-effective ways to celebrate the holidays. Think outside the box, such as making personalized gifts, organizing potluck dinners, or participating in charitable activities. These alternatives can foster a sense of connection and meaning without the pressure of overspending. Even though it might be different to how you have typically done it, starting a new tradition is equally fun and exciting. Read further about the Gift of Giving to Others.
Communicating Financial Boundaries
Open and honest communication with loved ones about budgetary constraints is crucial. Although uncomfortable, discussing your holiday budget with family and friends, and emphasizing the importance of understanding and supporting one another's financial boundaries is essential. Especially if your holidays include gift-giving. The earlier in the season, you have these conversations, the better. And, likely expenses around the holiday, are of concern for them as well.
Consider the following statistics on gifts:
According to the Wrap-up: Snappy’s 2022 Holiday Gift Report, the majority of Americans (64.2%) report they need help when it comes to Holiday Gifting (Snappy, 2022).
And, Joshua Becker, at Becoming Minimalist, shared these statistics from Finder.com.
53.1% of people report to receiving unwanted gifts during Christmas
$16 billion is wasted on unwanted gifts every year.
If this is an area you would like more support in, check out How to Navigate the Holidays by Setting Financial Boundaries. Or, Download Free Holiday Financial Boundaries Scripts to help prepare you for these financially freeing conversations.
Embracing Creative Solutions
Explore creative and cost-effective ways to celebrate the holidays. Think outside the box, such as making personalized gifts, organizing potluck dinners, or participating in charitable activities. These alternatives can foster a sense of connection and meaning without the pressure of overspending. Even though it might be different to how you have typically done it, starting a new tradition is equally fun and exciting.
Stress Management Techniques
The holiday season in California can be stressful, and financial worries can exacerbate this stress. Some great stress management techniques, such as small repetitive moments bring you back into the present moment when you feel stress or impulsiveness. I like Dropping Anchor or pushing my fingertips together or rubbing my hands together. These activities help you to connect with the body and link with the present moment. Other active skills such as mindfulness, deep breathing, and relaxation exercises, will help you cope with the emotional challenges that may arise during this time. For more stress management techniques, you might enjoy, Financial Self-Care: Transforming Stress into Money Gratitude.
Avoiding Emotional Spending
Emotional spending, which often occurs when individuals use shopping as a coping mechanism for stress, sadness, or loneliness can arise during the holiday season. Impulsive spending is also emotional spending. Be mindful of your emotional triggers by taking time to write down throughout the day when you are inclined to shop whether on the internet or in person. Rather than judge yourself for these inclinations, accept that these are a part of your mental rhythm. Practice emotional regulation techniques like body movement, stretching, or mindfulness to help create space and awareness around your emotions in the moment. Explore whether emotional or impulsive spending aligns with your values or how you want to experience the holiday season. If not, then make a goal to reduce emotional or impulsive spending.
If reducing emotional spending is top of your mind, check out an emotional spending checklist to set you up for success this holiday season. Or, find some more tips by reading Breaking Psychological Barriers with Money.
Seeking Professional Help
If you feel overwhelmed by financial stress during the holidays, you are not alone. There are many ways to access support including finding a friend support network whether they be friends or a like-minded group. There are also trained mental health professionals who specialize in financial therapy, providing you a supportive step toward regaining control over your finances and emotional wellbeing.
Conclusion
The California Holiday Financial Wellbeing Guide and Toolkit is designed to help Californians enjoy a festive and financially mindful holiday season. Packed with budgeting tools, values-based spending exercises, and emotion-awareness resources, this guide empowers you to align holiday spending with your financial goals and personal values. Whether navigating gift exchanges, planning gatherings, or managing travel costs, our toolkit provides practical strategies for setting boundaries, reducing financial stress, and making intentional choices. Celebrate the season with confidence, peace of mind, and a focus on what truly matters to you.
Ready to Learn how Koru Financial Therapy can help navigate the holidays?
Koru Financial Therapy offers personalized support to help you navigate the financial and emotional challenges of the holiday season with confidence and ease. Through values-based spending guidance, practical budgeting tools, and strategies for setting clear financial boundaries, Koru Financial Therapy helps you prioritize what matters most during this busy time of year. Whether it’s managing gift expenses, resisting impulsive purchases, or communicating financial limits with loved ones, Koru Financial Therapy provides a compassionate approach to make intentional, stress-free choices that support both your financial wellbeing and holiday joy.
To access Koru Financial Therapy services, follow the steps below:
Reach out to schedule a free 20-minute phone consultation.
Speak with Mariah, a certified financial therapist.
Start your journey to growth, strength, and peace.
Sign up for the Build Your Balance Email List
Other Services Offered at Koru Financial Therapy
Koru Financial Therapy provides a range of services tailored to support your financial and emotional wellbeing through every stage of life. In addition to holiday financial planning, Koru offers individual and couple sessions focused on topics like ADHD money management, premarital financial counseling, and peri- and postnatal financial therapy intensives. The Build Your Balance community offers ongoing support for clients seeking tools for financial growth and emotional resilience. Koru Financial Therapy also specializes in guiding clients through money dysmorphia, financial infidelity, financial trauma, and money perfectionism, using a values-based approach that encourages financial clarity, strength, and peace. Whether you’re navigating a specific financial challenge or seeking to improve overall financial wellbeing, Koru provides compassionate, practical guidance tailored to your unique needs.
About the Author
Mariah Hudler, founder of Koru Financial Therapy, is a licensed therapist and certified financial therapist dedicated to helping individuals and families find peace, strength, and balance in their financial lives. With a compassionate, values-centered approach, Mariah empowers clients to navigate life’s financial challenges—from managing holiday spending to planning for major life transitions. Drawing from Acceptance and Commitment Therapy (ACT) principles, Mariah provides guidance that honors both emotional and financial wellbeing, supporting clients in making mindful, intentional choices that align with their unique values and goals. Through Koru Financial Therapy, she is committed to fostering financial clarity, resilience, and confidence for Californians seeking greater control and purpose in their financial lives.
