5 ways your employer can help you with your finances in the holiday season

1. Set a holiday budget.

Recent research from Morgan Stanley has shown that people are still worried about high inflation, a recession, and market volatility, and these fears can put a damper on the holiday mood—especially considering that Americans spend an average of $1,455 per person over the holidays, according to Deloitte. Giving to charity, traveling to be with loved ones, and participating in big celebrations can come with a hefty price tag, so it’s not entirely surprising that the American Psychological Association found roughly two in five adults feel increased stress during the holidays, with financial concerns the most-cited cause.

To help alleviate any financial stress over the holidays, try setting a personal cap for yourself for how much you’re willing to spend, from plane tickets and hotels to gifts and donations. One simple budgeting rule that we often recommend to our workplace participants is the 50, 30, 20 rule, where 50% of your budget goes to cover needs, 30% to wants, and 20% to savings and investments. Put your holiday spend in the “wants” category and try not to dip into money that’s earmarked for your needs or savings. Also check with your employer—they may have budgeting tools, educational resources on managing financial stress, or even access to special discount or rewards programs to help you offset expenses during the holidays. For example, some workplace benefits providers offer access to additional perks like discounted admission to local cultural experiences and events as well as lifestyle discounts on shopping, travel, entertainment, and more.

2. Gift thoughtfully.

The holiday season is prime time to give back to the people and causes we value, and there are many ways to give while also protecting your financial health. There are even ways to give back through the workplace—like participating in company-organized volunteering events, donation drives where companies will sometimes match employee donations, or tapping into workplace charitable giving benefits, if available.

For example, you could potentially make a donation out of a retirement distribution from your workplace 401(k) or an employee stock purchase or equity compensation plan. Additionally, more employers are offering their employees access to a charitable giving vehicle called a donor-advised fund (DAF), which lets you donate assets you already own directly to charity, and can potentially help reduce your tax impact—check with a your employer and tax adviser to find out if this might be an appropriate option for you.

3. Do debt right.

Debt isn’t always negative, and many of us leverage debt around the holidays to help cover large purchases, travel, and even simply to accumulate reward points. If that’s where you are today, don’t worry, just take some time to carefully consider how any debt from the holidays fits into your total financial picture. Again, your employer may have some resources to help you get on top of debt, from financial literacy training to access to financial coaching or advice that you can use to help you formulate a personal financial plan that incorporates your future goals and current debt.

We often say in our workplace financial education programs that debt is a fact of life, and there are ways to thoughtfully incorporate wise debt management into your overall financial health. For example, it often makes sense to prioritize paying back the debt that charges you the highest interest rate first and to look for ways to use your debt as a strategy—like taking a mortgage to buy a home.  

4. Protect yourself.

The holiday spirit unfortunately doesn’t stop some bad actors from trying to take advantage of others. This time of year, there is often a spike in scams that use fraudulent package slips, receipts, online surveys, gift cards, social media messages, texts, and phone calls to phish for your personal and financial information.

Read: Elder abuse and financial scams can worsen during the holidays: 3 scams to watch out for and 3 signs of trouble

It can be easy to fall prey to traps like these during the hectic holiday season, so while you look for ways to express your generosity and holiday spirit, stay alert regarding your financial safety. Avail yourself of any resources available to help you protect yourself and your information—many companies may offer resources through their benefits programs that may be able to help, such as financial education, identity theft protection services, or even access to fraud resolution specialists.

5. Look ahead.

It’s not selfish to make our own financial well-being a priority. If you find yourself feeling stressed or uncertain about giving this holiday season or navigating any other aspects of your financial life, reach out for help.

Many companies offer access to a range of financial benefits and additional resources that can help you manage your finances and your financial stress, from mobile apps and online tracking tools to access to professional support like financial advisers to help you weigh decisions and create personalized strategies for your money. It can be tempting to put real life on the back burner during the holidays, but the clock never stops when it comes to building for your financial future. Making financial choices to protect your goals and help reduce stress—even during high-gloss moments like the holidays—is an important practice in your ongoing financial journey.

Craig Rubino is head of participant insights, financial wellness, and learning for Morgan Stanley at Work.

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