One important component of financial wellness is mindful holiday spending. Research shows that financial strain plays a significant role in seasonal stress, affecting emotional well-being and overall life satisfaction (American Psychological Association, 2023). Mindful spending means slowing down long enough to ask a few key questions: What matters most to me and my family? What purchases will genuinely enhance my well-being? Which expenses am I taking on out of obligation rather than intention? By becoming more aware of why we spend—not just how—we can make choices that bring joy without compromising stability.

Setting boundaries around gift expectations is another essential practice. The pressure to meet unspoken or assumed expectations can lead to overspending, guilt, or comparison. Healthy boundaries might look like suggesting a gift exchange with spending limits, offering handmade items or acts of service, or simply communicating honestly with loved ones about your financial priorities this year. Research suggests that setting clear personal boundaries reduces stress and supports healthier interpersonal relationships (Smith & Nichols, 2020). Within our work community, it can also help ensure that gift-giving remains inclusive and comfortable for all.

As December brings increased spending, it’s also a strategic time to plan for January expenses. The start of the year often includes recurring costs such as insurance premiums, licensure fees, home heating bills, or educational expenses. Creating a simple month-ahead budget—or setting aside a small reserve—can reduce the financial “whiplash” many people feel in early January. Even small steps, such as reviewing subscriptions or scheduling bill reminders, can significantly improve financial confidence.

For employees enrolled in Flexible Spending Accounts (FSAs), December is an ideal time to check remaining balances and plan ahead. At K College, employees have until March 31, 2026 to submit claims for expenses that were incurred during the 2025 plan year. After the March 31 deadline, any remaining funds are evaluated for rollover eligibility. If the remaining balance is $660 or less, those funds will automatically roll over into your 2026 FSA. Any amount above $660 will be forfeited, per IRS rollover rules. Reviewing your balance now—and considering eligible expenses such as copays, prescriptions, vision or dental needs, and qualified over-the-counter items—can help you make the most of your FSA dollars before the deadline.

Overall, financial wellness during the holidays is about caring for our future selves. By practicing mindful spending, communicating boundaries, preparing for upcoming expenses, and understanding benefits such as FSAs, we create greater peace of mind during a season that can easily become overwhelming. Financial wellness is not a one-time achievement—it is an ongoing commitment to making informed, compassionate choices that align with our values and long-term well-being.