Special occasion financial planning: How to survive — and thrive — during holidays, celebrations

MANILA, Philippines — Graduation season is in!

Everything is festive, glittering and happy. It is a time for the family to bond over good food and out-of-town weekend trips, for the clan to come together for a reunion, and for friends to meet up and reconnect. There are parties everywhere. During special occasions, like graduations, people feel more empowered to spend on things they have been longing to treat themselves to for a while now.

Yes, it is a wonderful time of the year, indeed. But it can also turn out to be the worst if you don’t put a rein on your spending. When you succumb to the lure of shopping and the temptation of overspending in the guise of spreading holiday cheer to family and friends, you will find yourself in a financial crisis.

But this does not have to be your reality. With proper planning, you can survive — and even thrive —financially at any time of the year.

How do you do that? Rizal Commercial Banking Corporation (RCBC) offers some tips on how to stay financially healthy:

1. Create a holiday budget, but prioritize the basics. 

Make a budget that includes everything you need to spend on. Having a set budget prevents you from overspending. But before you create the budget, take note of the essentials first: loans and utility bills, transportation, and miscellaneous expenses. Make sure your priorities and essentials are covered before touching the special occasion fund.

2. Be aware of special occasion stressors. 

Many people link holiday overspending to the festive spirit, but the season can also bring significant stress. Some possible sources of holiday stress are financial pressures, emotional strain of social obligations, and even physical fatigue. This stress often leads to coping mechanisms like gambling or compulsive shopping. It's important to identify how you handle emotions during challenging times and explore healthier ways to manage them, ensuring you stay in control of your well-being and finances. Of course, this also means you need to stay away from sources of temptation.

3. Avoid impulse purchases. 

Do not get carried away with special occasion cheer, because impulse purchases can blow your budget. Use your credit card thoughtfully and stick to your budget plan. Your credit card is a versatile tool for managing holiday spending but it requires discipline and smart-decision making. You can also check your available credit card rewards points and redeem them for gift vouchers, which are perfect presents for those who appreciate the gift of choice.

4. Be open about financial boundaries. 

Do you feel your family and friends are expecting too much from you on a special holiday? Having conversations about how much you can spend for that planned night out with your friends can ease the stress of holiday-related spending. Being open about how much you can spend allows you and your friends to look for other party options that can accommodate everyone’s budget. This way, you will be able to adjust your budget and your expectations. Most people will understand that budgets vary, making such discussions essential for a joyful, guilt-free special occasion.

5. Plan for the year ahead. 

Budgeting and setting expectations can make your holiday significantly more stress-free. But setting goals for the next year this early will allow you to not just survive Christmas but also thrive beyond the holidays. Consider paying off your debts with the bonuses or 13th month pay (or any holiday-related windfall) you will receive. With those out of the way, create a personalized list of financial goals you want to achieve for 2025 and beyond. Do you want a specific amount saved up by the year’s end? Are you saving up for a vacation for your 2025 birthday? Do you want to save up for the down payment of an auto loan you are planning to make? This is the time to do it.