The holiday season traditionally brings warmth and joy, but for many Black women this year, it is shrouded in stress and uncertainty. Major layoffs in major tech companies, including Amazon and Meta, have impacted economic stability, notably pushing over 300,000 Black women out of the workforce.
Additionally, the longest government shutdown in U.S. history left many furloughed workers without pay for weeks, further complicating financial planning during the festive period. “My recent layoff has affected every facet of my life,” states Danah Montgomery, a nonprofit leader currently facing unemployment. “My health concerns have worsened, likely due to stress, but I am unable to address them without health insurance.”
Others, like Elike Jones, a federal researcher, echoed similar feelings of instability. “The furlough created uncertainty that affected both my finances and emotional well-being,” he said, adding that he has had to become more budget-conscious and prioritize essential expenses.
Revisiting Financial Foundations
According to Alanna Anthony, CPA and founder of Financialdemics, Black women are encouraged to step back and assess their financial situations. “When you fly, they tell you to put on your own oxygen mask before helping others,” she explained. This principle applies to financial health: prioritize your situation before committing to holiday expenditures.
For those who may struggle financially, assistance is available. Organizations like The Salvation Army and Catholic Charities offer food and gift support during the holidays. Alternatively, calling 211 can connect individuals with local resources offering aid.
If there’s room for holiday spending, Anthony advocates for setting a definitive budget. “Break down spending per person and start early to avoid overspending,” she advises. Montgomery, for example, is redirecting her energy to utilize her existing resources more effectively by inviting family over for home-cooked meals instead of dining out.
Considering smaller holiday gatherings or potluck-style meals can also alleviate financial stress. “Assess what your family truly eats to minimize waste and keep costs manageable,” Anthony suggests.
In terms of gifts, creativity can take precedence over cost. Personalized gifts, such as homemade meals or crafts, are often more appreciated than expensive items. If you opt for regifting, ensure items appear new and unused and that there’s enough emotional distance to avoid hurt feelings.
Families can establish their gift-giving norms, whether that includes only gifting to children or drawing names among adults with a set budget. “Focusing on shared activities, such as cooking or volunteering, can create cherished memories beyond the exchange of gifts,” advises Anthony.
Initiating Financial Conversations as a Family
The economic challenges of the moment present an opportunity for families to discuss budgeting and financial planning openly. This dialogue can serve to reduce the stigma associated with financial hardship, as many families may already be experiencing similar strains.
“Forming financial accountability groups within families can provide a support system,” Anthony adds, encouraging goals and regular check-ins to maintain progress.
Additionally, reassessing consumer habits may be beneficial. Montgomery notes that disconnecting from consumerism can lead to more meaningful celebrations. “I find solace in decreasing my spending and embracing less materialistic traditions,” she remarked.
Redefining Generosity
Generosity can take on new forms, as emphasized by Anthony: “Being considerate of others’ needs, even in small ways, can greatly impact your community.” Jones illustrates this perspective. After experiencing job-related turbulence, she now values security in community support and adaptability, realizing that both financial and emotional preparations are critical for stability.
Evaluating Career and Financial Aspirations During the Holidays
The economic environment has led many Black women to reconsider their career paths and financial strategies. “This season isn’t merely about surviving, but about contemplating roles that align with my long-term goals,” asserts Jackson. “Exploring alternative income sources, such as freelancing, is now on my radar as I seek a suitable full-time position.”
Montgomery agrees, stating that she is exploring diverse fields rather than rushing back into her previous job, evaluating opportunities in real estate and consulting as she reflects on her career aspirations.
Embracing Historical Resilience
Despite the challenges posed by financial instability, Black women are discovering ways to thrive with less, invoking the resilience their ancestors demonstrated. “We come from a legacy of resourcefulness, and tapping into this allows us to cultivate an abundance mindset,” Montgomery emphasizes, advocating for a focus on community, love, and intentional financial decisions this holiday season.
By fostering these values, Black women are paving a new path that pays tribute to their history while empowering them to build a fulfilling future.
Kara is the founder of The Frugal Feminista and author of “Heal Your Relationship with Money” and “Unmasking the Strong Black Woman.”
