Financial Wellness for the Holidays and Smart Strategies for Small Business Leaders

We’ve officially made it past Cyber Monday, but the nonstop holiday deals and spending pressure haven’t let up. As I sat back to review the Financial Wellness series we posted a month or two ago, it struck me that we should be communicating financial wellness now! 

If our last blog encouraged you to start a financial wellness program for your team, please don’t wait until the first of the year to get the promotional materials started.  And here is why Holiday financial wellness for small business matters…

According to LendingTree.com, these statistics recap the 2024 Holiday Season

• 36% of Americans took on holiday debt, with an average of $1,181 spent.

• 42% of those who took on debt have the highest interest rate at 20.00% or higher.

• 60% of those who took on debt say they are stressed about it

• 69% of the previous 60% were parents of young children expressing that

• 42% say they regret spending as much as they did

• 21% expected it would take five months or longer to pay it off.

• 20% only made minimum payments.

• 65% of those purchases were on a credit card, and 24% on a store card.

These statistics highlight the financial pressures Americans face during the holiday season and the importance of managing debt to maintain financial well-being.  And let’s face it, many times, the things we buy aren’t even real necessities. 

I think you would agree the holiday season is a time for joy, generosity, and connection, but the financial pressure that comes with it makes it one of the most financially stressful times of the year.  Is it worth it?   I know we all enjoy the feel of the excitement of the season…. between gift-giving, travel, and family gatherings, holiday spending can quickly spiral into debt, creating stress which remains way past when the decorations come down.

For small businesses, this financial strain isn’t just a personal problem for employees, it’s an organizational one. As such, supporting financial wellness isn’t just a “nice to have” – it’s a smart business strategy.

As we discussed before, financial stress impacts productivity, absenteeism, and overall engagement. Those struggling financially are five times more likely to be distracted at work.  On top of that, studies continue to show that nearly 60% of employees say financial worries are their biggest source of stress, and that stress tends to spike during the holidays.

So, how can employers help their teams navigate this season without breaking the bank, or their spirit?  As an employer, you can’t control how employees spend their money, but you can create a culture that supports healthy financial habits year-round, and especially during the holidays.

Encourage Smart (and Simple) Celebrations while also Promoting Low- or No-Cost Gift Alternatives

Small businesses often feel pressure to “go big” for employee appreciation around the holidays, but meaningful doesn’t have to mean expensive.

Encourage a culture that celebrates togetherness, not extravagance:

• Host a potluck or cookie exchange instead of a costly party

• Organize a Secret Santa or “White Elephant” with spending caps

• Provide flexible scheduling or an extra day off as a holiday perk instead of lavish gifts that your employees may not need or use

• Volunteer!  A group that partners together to benefit others creates a bond that I truly cannot explain.

Encourage creativity and connection instead of cost. Share ideas such as:

• Homemade or experience-based gifts

• Holiday traditions that emphasize time, not money

• Re-distributing new and unused items that employees may be keeping which someone else they know would use.  (Think upscale regifting-LOL!)

• How about a fun internal campaign—you could call it “A Festive Frugal Challenge” where employees share their best low-cost gift or celebration ideas.  Maybe add on some individual goal setting options and then offer to match their cost savings.  That would put a very different spin on allowing them to reframe their traditional thoughts about Holiday Spend!

• Volunteer!  A great opportunity to remove the focus on yourself and your family is to take this opportunity to give back instead of receiving.

These approaches keep morale high without adding financial pressure—on your business or your employees.

Lead by Example – Model Healthy Boundaries

Leaders can model healthy spending and self-care during the holidays. That might mean openly sharing how they budget or how their family sets spending limits. I know personally, I maintain a separate bank account at a completely different bank with no access otherwise where a portion of my paycheck goes each pay period and that becomes our Christmas budget each year.  It has worked now for my family for over 15 years.

A culture of transparency and realistic expectations goes a long way in normalizing smart financial habits.

If owners and managers demonstrate balanced spending and encourage time off, employees are more likely to follow suit. Avoid glorifying overwork during the holidays, and remind your team that rest is as valuable as results.

Employees take cues from leadership, so model the behaviors you hope to see.

Don’t Forget the Human Side/Think About Holistic Wellbeing

Financial wellness is only one part of the equation. The holidays can be emotionally and physically demanding too.

Integrate your financial wellness message with your overall wellbeing strategy:

• Remind staff of mental health resources or EAP options

• Offer flexibility for family or volunteer time

• Keep workloads manageable through clear priorities and planning

• Encourage time off and self-care

When employees feel supported in every aspect of their wellbeing, they’re more likely to stay focused and loyal to your organization

Start the Conversation Early for Awareness and Education

Proactive communication is key. Don’t wait until after the holidays to talk about financial wellbeing.  Encourage employees to take stock of their finances before the holiday rush begins.  This will hopefully help them to kick off 2026 in a much better position.

As we shared in our previous blog on employee financial wellness, small businesses can offer short webinars or lunch-and-learns on budgeting, managing debt, and setting boundaries during the holidays.

• Creating and sticking to a holiday budget

• Tracking spending with free budgeting apps

• Use cash instead of credit cards

• Recognizing emotional spending triggers

• Setting financial boundaries with family and friends

Provide resources or bring in a financial wellness speaker who can empower employees to make intentional spending decisions.  Consider sharing quick tips or resources in a company newsletter or team meeting.

If you already offer financial wellness resources through your benefits or EAP provider, highlight them now. A timely reminder can make all the difference.

Lastly, if you haven’t done this yet, offer Financial Wellness Tools Year-Round

Employees are more likely to avoid holiday overspending when they have ongoing access to financial education and planning support. In addition, let’s be honest financial education shouldn’t be seasonal. Consider:

• Financial literacy workshops or access to a certified financial coach

• Payroll savings programs (like automatic transfers into savings accounts)

• Tools for debt management and goal setting

• Partner with a local credit union or bank for savings incentives/promotional banking opportunities

• Share short, practical resources on saving, debt reduction, and budgeting – especially if you have something you have personally used!

• Encourage participation in 401(k) plans or automatic payroll savings, once participating then encourage employees to build in small increases incrementally.  They will be saving more without even feeling it in their paycheck.

Simple tools help employees build long-term financial confidence, which reduces stress and improves overall engagement.

Ring in the New Year with Success Stories to Celebrate Wins!  Encourage your employees to share all positive experiences.  We most often mimicking those who we love and respect.  If we see someone excelling in this area, ensure that we promote that, so they can mentor and impact others.

Bottom Line

For small businesses, every employee counts, and so does every bit of productivity. Financial wellness doesn’t take a holiday.

By helping employees prepare, plan, and prioritize, employers can support both the financial and emotional wellbeing of their teams, creating a healthier, more focused workforce as the new year begins.

As a side effect of helping your team, you will create a culture of awareness, moderation, and support, which will help your team avoid the post-holiday financial hangover and start the new year clear-headed, motivated, and engaged.