Finances, Festive Pressure and Our Mental Health: A Therapeutic Perspective

For many people, this time of year brings a unique mix of expectation and pressure. The shorter days, end-of-year deadlines and social obligations can already feel overwhelming, and when financial worries are added to the mix, stress levels can rise sharply. Whether it’s the cost of Christmas, increased energy bills, or anxiety about the year ahead, money concerns are one of the most common sources of psychological distress I hear about in therapy.

From a therapeutic point of view, it’s important to understand that financial stress is not simply about numbers on a bank statement. It is deeply connected to our sense of safety, self-worth, responsibility and identity. Different therapeutic approaches help us explore and manage this stress in complementary ways.

The emotional impact of financial stress

Money worries often trigger our threat system. Thoughts such as “I’m failing”, “I should be coping better” or “I’m letting my family down” can create a cycle of anxiety, shame and self-criticism. At this time of year, social comparison can intensify these feelings. Seeing images of abundance and celebration can lead to the belief that everyone else is managing better, even though this is rarely the full picture.

When stress becomes chronic, it can affect sleep, concentration, relationships and physical health. Therapy offers a space not to “fix” finances directly, but to work with the emotional and psychological impact they create.

A Person-Centred Therapy (PCT) perspective

From a person-centred perspective, financial stress is understood within the context of the individual’s lived experience. Rather than viewing stress as something to be eliminated, PCT focuses on offering empathy, unconditional positive regard and genuineness. Many people carry a deep sense of shame around money, which can make it difficult to talk openly.

In a person-centred space, simply being heard without judgement can be profoundly relieving. When someone feels accepted as they are, they are more able to reconnect with their own internal resources. Financial difficulties do not define a person’s worth, and therapy can help loosen the link between money and self-esteem. Often, self-compassion grows naturally when individuals feel truly understood.

Cognitive Behavioural Therapy (CBT) and money worries

CBT focuses on the relationship between thoughts, feelings and behaviours. Financial stress often comes with unhelpful thinking patterns such as catastrophising (“This will never get better”), black-and-white thinking (“If I can’t afford this, I’ve failed”) or mind-reading (“People will judge me if they know”).

In CBT, these thoughts are gently examined and challenged. The aim is not forced positivity, but developing more balanced and realistic thinking. For example, shifting from “I’m terrible with money” to “I’m under a lot of pressure right now, and I’m doing the best I can with what I have.”

CBT also looks at behaviours linked to stress, such as avoidance (not opening bills) or impulsive spending as a form of emotional relief. Small, manageable changes can help reduce anxiety and increase a sense of control, which is particularly important during high-pressure periods like the end of the year.

A Solution-Focused approach

Solution-focused therapy is less concerned with analysing the origins of stress and more interested in what helps. When finances feel overwhelming, people can become stuck focusing on everything that is wrong. A solution-focused approach asks questions such as: “What has helped you cope before?” or “What would tell you that things were just a little bit better?”

This approach can be especially helpful at this time of year, when people may feel they need to solve everything at once. Instead, the focus is on small, achievable steps and recognising existing strengths. Even noticing moments when stress eases, however briefly, can build hope and momentum.

Moving through this season with care

Financial stress is not a personal failing; it is a human response to pressure and uncertainty. Therapy reminds us that we do not have to face this alone, and that our value is not measured by our spending power or productivity.

As this year draws to a close, it may help to offer yourself the same compassion you would offer a friend. Slowing down, adjusting expectations and acknowledging what is hard can make a real difference. From a therapeutic perspective, meaningful change often begins not with doing more, but with understanding ourselves more kindly.