Holiday spending drives January blues: Tips to avoid them

For many Rwandans, January starts with a financial sting as weeks of holiday spending on gifts, food, travel, and family gatherings clash with bills, school fees, and loan repayments that stretch household budgets. Financial experts say this pattern is common, caused by festive pressures and limited planning. ALSO READ: How to spend this Christmas without breaking the bank Jackson Kwikiriza, the chief executive of the Association of Microfinance Institutions in Rwanda (AMIR), said December usually catches households off guard. “Spending starts with gifts, food, and celebrations, then travel plans and school holidays add pressure. Family obligations follow, and many people end up spending more than they planned, dipping into savings or turning to short-term loans. By the time January arrives, the bills begin to surface and the festive cheer has faded,” he noted. ALSO READ: Why saving must become every Rwandan’s national duty Kwikiriza explained that when the holiday season ends, many households start feeling the pinch as income slows, noting that businesses cut back, bonuses and commissions fall, casual work opportunities dry up, and some salaries are delayed because of year-end closures. He added that expenses stay high while income drops, which leaves families financially vulnerable. “As January begins, unavoidable costs start to pile up, such as school fees and supplies, rent increases, insurance renewals, transport, and work-related expenses all reach before many households have had a chance to recover from December. “At the same time, credit repayments reach their peak, with many relying on credit cards, mobile loans, or SACCO and Microfinance Institutions short-term loans. Late payments, rising interest, and accumulating loan obligations make some people feel paid but already broke,” Kwikiriza said. He noted that by the beginning of the year, savings that were spent during December or used for end-of-year bonuses are depleted, and even small unexpected expenses can create stress for people. Kwikiriza observed that the financial strain increases as people return to work and face high living costs while trying to meet new-year expectations, which can increase anxiety. Prices for food, transport, and utilities rarely drop, and some rise due to inflation or new tariffs, adding pressure on families or people that are unprepared. “The challenge is worsened by a weak culture of financial planning, with December spending encouraged in many East African households while little attention is paid to preparing for January. With few families budgeting throughout the year, the start of the new year can hit as a harsh financial shock.” He added that in many cases, the joy of December comes at the cost of January, as families spend money that is meant for future obligations, creating financial stress at the start of the year. Tips to avoid financial stress The financial expert said families should keep money reserved for January, covering rent, school fees, transport, loan repayments, and basic expenses, untouched. He advised funding January first before spending on gifts, travel, or hosting gatherings, stressing that if December spending causes January anxiety, it is too costly. He noted that separating money for January is important, urging families to keep these funds in a separate account, SACCO wallet, or envelope labeled “January – do not touch” and treat it as off-limits, since most January stress comes from mixing festive money with essential expenses. Kwikiriza advised setting a fixed holiday budget and sticking to it, for instance, families should decide in advance how much December celebrations will cost and stop once the budget is spent, with no top-ups, borrowing, or just one more thing. The expert said that discipline in December helps prevent regret in January. Saying no without guilt is another great step, as attending every party, giving expensive gifts, or traveling beyond one’s means is optional. Keeping celebrations simple helps people to focus on priorities, since unpaid rent or school fees cannot be ignored, he added. “Replacing costly habits with more meaningful alternatives can also ease financial pressure, for example, instead of expensive gifts, people can give time, share meals, pray, or have conversations. Travel, hosting, and clothing choices can be simplified, this shows that joy does not depend on overspending.” Kwikiriza advises to avoid January debt because borrowing to fund December fun only pushes financial pressure into the new year. He noted that the best way to enjoy the holidays is to start the year focused rather than desperate, return to work without panic, and handle the months ahead with financial security. According to Aimable Nkuranga, a financial coach based in Kigali, during the holiday season, many people feel pressure to spend beyond their means, as traditions of solidarity and togetherness come with expectations from family, friends, and community groups. He calls upon people to skip contributions or celebrations that could strain their finances, noting that generosity should not come at the expense of stability. Nkuranga noted that giving does not always mean money, explaining that most Rwandan families respect being present, offering time, or providing support can matter more than expensive gifts, cash contributions, or lavish celebrations. “Planning ahead and setting a fixed holiday budget can take the pressure off spending, and learning to say no to expectations that are hard to meet is a way to protect both yourself and those who depend on you,” he noted. Nkuranga said the holiday season should be treated as a planned expense, not as an exception to financial discipline. “Reviewing spending after the holidays is important, because even if mistakes were made this year, forward planning still matters. Starting in January, people can begin setting aside small amounts throughout the year for end-of-year celebrations. This approach allows December 2026 to be managed more calmly, and January 2027 to begin without financial burden,” Nkuranga stated. He added that by planning budgets and focusing on essential needs, people can enjoy holiday traditions, and that generosity, through presence, time, or support, can help meet expectations without risking their finances.

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Holiday spending drives January blues: Tips to avoid them