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Despite being one of the most wonderful times of the year, the Christmas season can be an incredibly stressful period, especially when it comes to finances.
As Christmas approaches, many are already beginning to feel the pressure of increased spending and expectations. For African, Caribbean, and African-American families, the pressure can feel even more intense. This is because of our cultural traditions that often emphasize generosity, large family gatherings, and supporting relatives back home. This can increase one’s spending on food, travel, and gifts. The anxiety that comes with thinking about money this season can steal the joy from the celebrations.
Holiday Spending Trends and What Black Families Face This Season
In its annual holiday forecast, the National Retail Federation predicted that retail sales in November and December will grow between 3.7% and 4.2% over 2024, with U.S. shoppers expected to spend over $1 trillion during the holiday shopping season.
However, the financial landscape looks different for Black households. The Federal Reserve reports that Black households hold less median wealth compared to white households, making financial stress during holidays more acute.
Many diaspora families feel responsible for supporting relatives back home while managing their own holiday expenses. There’s often an expectation to send money back home to extended family, friends, and community elders, which can expand the gift-giving list and increase seasonal expenses.
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Mrs. Henry sends $100 to her mum in Nigeria every month. However, during the Christmas season, her expenses skyrocket. Not only does she double the amount sent to her mother, but she also extends financial support to her siblings, nephews, nieces, extended relatives, and even members of her local church back home. After she sat down to do her calculations at the end of the 2024 holiday season, she realised she had spent over $1000 on friends and family in Nigeria. She has vowed to change her approach.
“This year, I have made up my mind that I won’t be doing that Father Christmas, because at the end of the day, you realize you are left with no savings while trying to please everyone back home.”
In a national survey commissioned by Beyond Finance, two-thirds (66%) of the 2,000 respondents say there’s an unhealthy cultural pressure to buy gifts even when they can’t afford to.
“People feel torn between wanting to create joy and the guilt of knowing they can’t afford it. When cultural norms, family traditions, and social media all amplify that pressure, overspending becomes emotional, not rational,” said Erika Rasure, chief financial wellness advisor at Beyond Finance.
It’s the season of giving, but if not carefully avoided, there’s always a danger of impulse buying and overspending, which can easily blow your budget, leaving you financially strained and vulnerable when January arrives. What can be done?
How Black Families Can Save Money During the Holidays
For African, Caribbean, and African-American families, there are many ways to cut holiday spending and save money, from making the most of coupons to comparing prices. These tricks will help you carry less of a debt, or potentially none, into the new year.
Set a Budget and Stick to it
One of the best things you can do for yourself this season is to set a budget and not go above it. The budget has to be realistic for your personality and lifestyle. You need to have a strong understanding of how much you earn and spend each month. This can help guide you on how much you can afford to spend on holiday-season shopping.
Next, you should be specific about how much you plan to spend on gifts for each person, food, travel, and every little item. Whatever the total cost comes to, make sure it’s an amount you can reasonably afford without overextending yourself financially.
You can find a wide range of holiday budget templates on Google Docs and Google Sheets. You can also check out EveryDollar, a popular zero-based budgeting app.
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Track Your Expenses
Regularly check if you are staying on track with your expenses. This can be useful in staying within your budget. Apps like YNAB (You Need A Budget) can help you categorize your holiday spending and alert you when you’re close to your limit.
Make a List
Make a list of all the holiday-related expenses you foresee, from food, gifts, and travel, to holiday decorations, clothes, entertainment, and charitable giving. The list should be thorough, containing who you’re buying for, what holiday meals you’re making, and travel tickets. All these should come with a spending estimate to ensure you don’t go off course.
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Take Advantage of Coupons
Many people are not taking advantage of online coupons that could help stretch their dollars during the holiday season. Supermarket coupons are a really great way to slash the cost of your shopping, so you do not burn a hole in your pocket. You’ll find coupons in free supermarket magazines, on promotional packets, and online.
For example, Amazon offers tons of discounts via coupons. To find them is quite easy. Go to “Today’s Deals” in the top navigation of Amazon, and scroll all the way to the “Coupons” section.
You can take advantage of the following coupon and cashback platforms:
- Honey – Automatically applies coupon codes at checkout
- Rakuten – Cash back on fashion, electronics, and gifts
- RetailMeNot – Promo codes and deals
Compare Prices
Take the time to compare prices, products, and websites, instead of giving in to last-minute, stressful shopping at higher prices. You may have to visit different supermarkets to get the best deals. Price comparison websites like Google Shopping and Shopping.com enable you to find, compare, and purchase products more easily online. Other online tools you can use to compare product prices before you leave the house include ShopSavvy and PriceGrabber. With these, you know you’re getting the best deal at the best price.
Research Discount and Sales
Knowledge is power, especially when it comes to saving money. Discounts and sales are a huge part of cutting your spending during the holidays. Many retailers offer seasonal discounts, flash sales, and loyalty rewards. So before you head out to shop, take time to research those offering discounts and sales. You can also follow your favorite shops on social media for exclusive deals.
Avoid Impulse Buying
From flash sales to last chance deals, Christmas marketing is designed to make you spend emotionally. Before you add that product to your cart, ask yourself: “Do I really need it?” “Is it on my list, or am I just buying it because of the fear of missing out?”
This season, be disciplined enough not to make unplanned purchases or dip into your savings to buy something you may end up not using or regretting.
Shop Second-hand
Forget the stigma of “used.” Think of second-hand shopping as an exciting opportunity to get unique and high-quality items. Charity shops, vintage stores, Facebook Marketplace, and local community sales are full of hidden gems, including everything from vintage clothes and designer accessories to valuable collectibles. Visit these shops for less pricey gifts and ornaments. You may end up finding vintage gifts that are more special than new ones.
Also consider shopping from Black-owned businesses for meaningful gifts that keep money circulating in the community.
Delegate the Dishes
Food is one of the highest hidden costs of the holidays, but you don’t have to carry the full financial weight alone. If you are planning to have friends and family members over for Christmas dinner, you can delegate the dishes instead of trying to do everything by yourself. You can ask each person to handle different meals. That way, you will cut costs and also reduce stress.
Christmas doesn’t have to mean debt. You don’t have to go broke to make it memorable. You don’t have to burn a hole in your pocket to show love, and you don’t have to stress yourself to prove anything to anyone. The goal is to be happy and enjoy the season without going overboard.
