The holiday season often brings cheer, reunions, and gift-giving—but it also stirs powerful emotions that can cloud judgment. Generosity, guilt, and the pressure to keep up with others are strong drivers of spending. While these feelings are natural, they can easily push families into debt if left unchecked.
According to Janice Sabitsana, a Registered Financial Planner (RFP), emotions are often the real culprit behind busted holiday budgets. In an interview with Financial Adviser PH, she explained:
“People rarely overspend because they lack discipline. They overspend because emotions take over. Guilt, excitement, or the desire to impress can make you forget the financial reality.”
Here’s how emotions affect holiday spending—and how to keep them under control.
The Pressure to Be Generous
Filipinos are known for their generosity, especially during Christmas. But Sabitsana warns that giving beyond your means can create long-term problems.
“You don’t need to match what others are giving. A thoughtful, affordable gift is more valuable than an expensive one you can’t really afford,” she said.
She recommends focusing on the intention behind the gift. “People remember the effort and sincerity, not the price tag,” Sabitsana added.
Guilt Spending
Many parents and breadwinners feel guilty if they can’t provide lavish holidays for their families. Sabitsana notes this is a common emotional trap.
“Guilt pushes people to buy more than they should, just to compensate. But debt after the holidays creates more stress for the whole family,” she explained.
Her advice: set limits early and communicate openly. “Tell your kids or relatives what’s realistic. Teaching financial values is a greater gift than giving beyond your means,” she said.
The Comparison Game
Scrolling through social media or attending reunions often fuels comparison. Seeing others spend big can trigger a fear of missing out.
“Don’t let comparison dictate your spending. Everyone has a different financial situation, and trying to keep up will only hurt your finances,” Sabitsana said.
Instead, she encourages celebrating in ways that reflect your values. “Focus on experiences and traditions unique to your family. Those create memories money can’t buy,” she added.
How to Outsmart Emotional Spending
Sabitsana suggests several practical steps to keep emotions from controlling your wallet during the holidays:
Make a shopping list—and assign a budget to each item.
Before you step into a mall or browse an online store, write down the people you’ll buy for and set a spending limit for each gift. “This simple habit keeps you focused,” Sabitsana said. “Without a list, it’s easy to get swept up by displays, promos, and last-minute temptations.”
Set a total holiday spending cap.
Beyond individual gifts, decide how much you can afford overall—including food, décor, and travel. “Treat this as non-negotiable,” she explained. “It’s like drawing a line in the sand. Once you hit the limit, you stop.”
Use cash or e-wallets instead of credit cards.
Swiping a card feels painless in the moment, which makes overspending easier. “Paying in cash or through prepaid e-wallets makes you more conscious of every peso leaving your pocket,” Sabitsana said.
Pause before you buy.
Emotional purchases often happen in the moment—especially when you see “limited-time offers” or feel pressured by sales staff. Sabitsana advises the 24-hour rule: “If something wasn’t on your list, wait a day before buying. Most of the time, you’ll realize you don’t actually need it.”
Avoid shopping when you’re tired, hungry, or stressed.
Research shows people spend more when they’re emotionally vulnerable. “Plan your shopping when you’re in a clear, calm state of mind. Decision-making is sharper, and you’ll avoid impulse buys,” she said.
Focus on experiences, not excess.
Instead of overspending on material items, Sabitsana suggests shifting to meaningful celebrations. “Games at family gatherings, shared meals, or even handmade tokens create stronger memories than expensive gifts,” she added.
“These tools help you stay grounded,” she explained. “They remind you that the goal of the season is meaningful celebration—not reckless spending that you’ll regret in January.”
Final Takeaway
Sabitsana believes holiday joy doesn’t come from overspending—it comes from intention and balance.
“The holidays are about connection, not consumption. If you let emotions control your spending, you’ll pay the price long after the season ends,” she told Financial Adviser PH.
By managing emotions, families can protect their finances while still celebrating fully—proof that the best holiday memories don’t need to come with a credit card bill.
