Potlucks and homemade gifts: How to avoid being stressed out over your finances during the holidays

Household expenses continue to rise and many Americans are expressing concern about their financial futures, according to a poll from The Associated Press-NORC Center for Public Affairs Research.

“Financial concerns are the number one anxiety-provoking issue (for the holidays),” said Dr. Petros Levounis, president of the American Psychiatric Association.

Here are recommendations from experts to reduce financial stress during the holidays:

SET EXPECTATIONS

In many families, the holidays mean going all out with gift giving. But this can quickly become stressful if your finances make it hard to keep up.

Managing expectations is key, according to Sarah Foster, a Bankrate.com analyst.

“During the holiday season, we often feel like not talking about money, not letting individuals know how much the gift we bought for them cost,” said Foster, who recommends leaving aside taboos and talking about how much you can afford to give this year.

MAKE A BUDGET

Setting a budget can help prevent stress during the holidays, Levounis said.

“Try not to spend beyond your means. Make a budget and stick with it. Being with friends is more meaningful for our mental health than the commercial aspects of this season,” he said.

But not spending during the holiday season, when it seems like everyone is spending so much money on gifts, is easier said than done. If you struggle with overspending, Trae Bodge, a shopping expert, recommends that you set a spending limit for yourself.

Bodge recommends that you write a list of gifts you and stick to it when you are out shopping. If you tend to spend a lot buying gifts for yourself, she recommends that you set a specific limit.

“If you say ‘I only have $50 or $100, you’re going to spend more mindfully’,” she said.

GET CREATIVE

There are several alternatives to spending a lot of money. They include:

— Homemade gifts

Lena Liu, 30, a Massachusetts-based fellow physician,…