The holiday season often feels like a whirlwind filled with celebrations, gifts, travel, and moments of indulgence. December carries a warm sense of generosity and togetherness. Yet when the excitement fades, January arrives quietly with a very different emotional tone. It becomes a moment of financial reality that many households are not prepared for.
Sylvia Poonen
TransformationWithin Coaching
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The True Cost of Holiday Cheer
Reliable data shows that people spend significantly more during the festive season. This rise in spending is not driven by gifts alone. Social expectations, emotional pressure, and the desire to end the year well all contribute. Behavioural researchers note that people often underestimate the long-term impact of festive expenses because December creates a temporary sense of abundance.
Adobe Analytics reported that during the 2023 U S holiday season, from November to December, consumers spent US$222.1 billion online, highlighting how powerfully seasonal emotions influence spending behaviour.
When Celebration Turns Into Debt
The challenge is not only how much people spend, but how they fund it. A World Bank review found that households in emerging markets frequently increase borrowing during high spending seasons such as December. In South Africa, the National Credit Regulator has recorded consistent rises in short-term credit applications during the final quarter of the year as consumers try to manage holiday-related costs. DebtBusters reported that 70 percent of South Africans feel financially stressed, and many turn to credit during the festive period only to experience regret later.
The January Effect
In South Africa, January is widely referred to as Januworry because of the financial strain that follows December. Families who stretch their budgets during the holidays often struggle with essential costs, such as school fees, food, transportation, and utilities.
FinMark Trust reports that about twelve million South African adults are over-indebted, and many rely on credit to cover basic needs, including groceries. When December spending pushes households beyond their limits, the new year begins with significant financial pressure.
January is also one of the most demanding months. School expenses return, annual debit orders resume, and cost-of-living increases become more noticeable. These pressures meet households at the very moment when bank balances are at their lowest, creating emotional strain and a sense of instability.
This strain affects mental well-being, decision-making, and relationships. Beginning the year under pressure can drain motivation and contribute to ongoing stress.
A Call for Financial Intentionality
If you want to enjoy the season without stepping into a financial trap, consider these principles.
- Plan – Create a realistic budget that includes January expenses such as school fees and household bills.
- Use cash or debit as far as possible – This reduces impulse spending and limits future debt.
- Track every rand or dollar– Awareness creates discipline.
- Prioritise essentials over luxury – Your future stability is more valuable than short-lived approval.
- Celebrate with intention – Choose activities and gifts that hold meaning without creating unnecessary pressure.
Open communication with family is also helpful. Honest conversations about expectations often reduce financial strain and support healthier decision-making. As you prepare for this festive season, consider January. Think of your goals, your budget, and your peace. When you plan with clarity, you begin the new year with dignity, confidence, and stability.
REFERENCES
Bank of England. How much do we spend at Christmas? https://www.bankofengland.co.uk/explainers/how-much-do-we-spend-at-christmas
Adobe Analytics. Holiday shopping season drove a record 222.1 billion dollars in online spending (2024). https://news.adobe.com/news/news-details/2024/media-alert-adobe-holiday-shopping-season-drove-a-record-222-1-billion-online
DebtBusters. Money Stress Tracker Report (2023). https://debtbusters.co.za
FinMark Trust. Twelve million adults struggle with debt while relying on credit to cope (2024). https://finmark.org.za/knowledge-hub/articles/12-million-adults-struggle-with-debt-while-relying-on-credit-to-cope
National Credit Regulator. Quarterly Credit Industry Report (2023). https://www.ncr.org.za/publications/industry-reportsWorld Bank. Household Borrowing and Consumer Vulnerability in Emerging Markets (2023). https://documents.worldbank.org