61% of shoppers say the holiday season is financially terrifying

NEW YORK — Many people “shop ’til they drop” during the holidays — but a new survey finds that may not be such a great thing. Researchers find one in four people grapple with compulsive overspending during the holiday season.

The research, commissioned by Beyond Finance and conducted by Talker Research among 2,000 people who celebrate a winter holiday, paints a stark picture of financial vulnerability. An overwhelming 56% of respondents feel pressured to spend money during the holidays, with family emerging as the primary source of financial strain (71%).

However, the challenges run far deeper than simple spending pressures. More than three-quarters of respondents (76%) experience what researchers call “money wounds” — emotional difficulties stemming from financial challenges that cut to the core of personal well-being.

“In my weekly therapy sessions with clients burdened by credit card debt, I regularly hear about the same challenges and mental health struggles highlighted in these survey findings, especially as they intensify during the holiday season,” says Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, in a statement. “It’s crucial to remember you’re not alone. Acknowledging these struggles and seeking support are key steps toward managing financial stress and finding peace.”

The study reveals a complex landscape of financial trauma. Low self-esteem (26%), compulsive overspending (21%), shame from past financial mistakes (21%), and a scarcity mindset (20%) emerge as the most common “money wounds.” During the holiday season specifically, compulsive overspending becomes the most prominent financial issue, affecting 25% of respondents.

The financial stress takes a significant emotional toll. Sixty-eight percent of those experiencing money wounds report that these challenges hold them back from feeling fulfilled and successful. This year, more than six in 10 respondents (61%) say they’re anxiously facing their finances for valid reasons.

Shoppers’ coping mechanisms are equally telling. Fifty-four percent of those with money wounds admit to avoiding their financial troubles during the holidays. This avoidance manifests in various ways: 37% refrain from buying gifts, 33% decline party invitations, and 29% avoid checking their bank account balances.

Perhaps most heartbreaking is the social isolation that follows. Forty-two percent of respondents say they’ll become distant from others to avoid feeling “less than” or experiencing spending pressure. This distancing comes at an emotional cost, with participants reporting feelings of shame (38%), guilt (39%), and loneliness (40%).

There is a glimmer of hope. Sixty-one percent of respondents are actively trying to embrace the philosophy that “money and spending don’t equal happiness.” Some are taking concrete steps toward healing, with 27% discussing their financial stress with a therapist or mental health expert, and 26% working with financial professionals to improve their habits.

However, the road to recovery is long. On average, respondents believe it takes six years for a money wound to heal. More sobering still, 37% don’t believe financial trauma ever completely resolves.

As the holiday season approaches, the study serves as a powerful reminder of the emotional complexity behind financial stress, urging compassion, understanding, and support for those struggling with money-related challenges.