As the Philippines ushers in the start of the long “Ber” months, households are bracing for heavier financial strain despite easing prices and lower borrowing costs.
According to the Philippine Statistics Authority, inflation cooled to 0.9% in July 2025, the lowest since 2019 and down from 1.4% in June.
The Bangko Sentral ng Pilipinas (BSP) followed by trimming its policy rate to 5.0% on August 28. However, lending has continued to expand by about 11% year-on-year, with consumer loans rising sharply.
In March, consumer credit climbed 23.6%, while credit card balances surged 29.3% in April, even as the BSP maintained its 3% monthly cap on unpaid finance charges.
Meanwhile, digital payments have overtaken cash.
Based on BSP’s 2024 digital payments report, electronic transactions accounted for 57.4% of retail volume and 59% of value, making spending faster and often harder to control.
Moreover, an AIA Philippines study in 2025 found that 59% of Filipinos cite money as their leading source of stress, underscoring how holiday expenses could intensify financial pressure as Christmas draws near.
Yet amid these trends, a small analogue countermeasure is quietly gaining traction: journaling, not as a vague self-care ritual, but as a combined stress-management and budgeting tool backed by research.
GET AHEAD OF HOLIDAY SPENDING. HERE’S THE JOURNAL YOU NEED.
Why the Financial Pressure Spikes in the ‘Ber’ Months
The Philippines’ long Christmas season, beginning in September, is joyful but also the costliest stretch of the year, with families juggling gifts, gatherings, balikbayan visits, and travel.
BSP data shows that overseas remittances reached a record US$3.73 billion in December 2024, pushing full-year inflows to US$38.34 billion. These inflows, however, are often matched by ballooning expenses.
Employers are also legally mandated to release the 13th-month pay no later than December 24 under Presidential Decree 851, further fueling late-year spending. At the same time, the rise of QR Ph, InstaPay, and PESONet has entrenched digital transactions as the norm, convenient, but also prone to “tap-now, think-later” habits.
Adding to this, the BSP’s 3% monthly cap on finance charges protects consumers on paper, but analysts warn that balances can still snowball quickly when payments are missed.
In an exclusive interview, Ser Percival K. Peña-Reyes, Assistant Professor of the Department of Economics at the Ateneo de Manila University and the Director of Ateneo Center for Economic Development told Joyful Wellness that controlling is a form of solution.
“In essence, you cannot control what you do not measure. Handling money is always going to be an emotional matter, so it is important to be self-aware,” Peña-Reyes said.
“What triggers you to spend irresponsibly? Is it the fear of missing out? Is it keeping up with the Joneses? It is not enough to know your enemy; you must also respect it.”
When asked about the biggest mistake Filipinos make in holiday spending, he said it comes down to spending wrong.
“It’s the pressure to conform to tradition, putting out a feast for family or friends or showing you’re doing well. That can be harmful if you really can’t afford it.”
Bonuses, he added, can only stretch so far. “You have to live within your means and stay grounded in what your budget can handle.”
READ: How Writing Can Help You Through Tough Times
The Case for ‘Money-Mood Journaling‘
The idea is simple: use one notebook, or even a basic notes app, to track both spending and emotions before and after each purchase.
Evidence supports its effectiveness. A 2025 meta-review in PLOS One found that positive expressive writing, journaling that emphasizes gratitude, self-reflection, and envisioning a positive future, significantly improved mood and reduced stress for many participants, though results varied.
Similarly, a 2025 study from the University of South Australia (reported in The Economic Times) found that regular financial habits such as saving and on-time debt repayment were significantly associated with improved emotional well-being, highlighting the mental health benefits of disciplined financial routines.
Behavioral science also validates the habit-tracking side.
A 2016 meta-analysis in Psychological Bulletin, covering 138 experiments, showed that monitoring progress, especially when physically recorded, significantly boosted goal attainment.
Together, these findings suggest that a money-mood journal, which merges emotional reflection with financial tracking, can be a low-cost but powerful tool to help regulate spending urges during the holiday rush.
READ: Unlocking the Transformative Power of Gratitude
How to Start a Holiday Money-Mood Journal
- Set Up Two Sections
Keep a Daily Log (date, expense, amount, payment method, feelings before and after, joy score, regret risk) and a Weekly Dashboard (essentials, gifts, transport, donations, savings, debt payments). Research confirms that physically recording progress increases the likelihood of success. Writing things down slows the swipe and turns impulses into choices.
- Anchor Planning to Seasonal Cash Flows
Note when your 13th-month pay will arrive, allocate it, say, 40% for essentials, 30% for debt, 20% for gifts, 10% for a January buffer. This pre-commitment is vital, especially as remittances and bonuses peak in December.
- Add Friction to Impulse Buys
Apply the 24-hour rule for non-essentials. If excitement lasts and regret risk is low, proceed; otherwise, skip. Use credit cards only for planned purchases, while small treats should be paid in cash or QR.
- Track Joy and Regret
Each expense gets a Joy Score (1–10) and Regret Risk rating. This shifts budgeting from pure numbers to values and meaning.
- Do a Weekly “Joy vs. Expense” Review
Use a 2×2 grid to categorize: Keep high-joy, low-cost items; Plan high-joy, high-cost; Limit low-joy, low-cost; Cut low-joy, high-cost.
- Make One Hard Choice Early
Before the rush, drop one costly, low-joy tradition. It’s easier to say no when the evidence is in front of you.
Research also shows these strategies work beyond theory. A 2021 user study on online shoppers found that interventions like reflection or distraction reduced impulse buying urges, underscoring the power of built-in friction.
What the numbers imply for holiday spenders
Even with inflation low, the season’s long shopping cycle still tests budgets. According to BSP, consumer loans, including credit cards, rose 24% in April 2025, while total bank lending grew 11.2% year-on-year. These figures highlight widening reliance on debt as gatherings and expenses mount.
“Monitoring is important,” Peña-Reyes emphasized.
“As people spend more during the holidays and settle debts, overall spending in the macroeconomy rises. That’s why measuring your inflows and outflows, and being mindful of the purpose of your spending, matters.”
He advised setting aside an emergency fund before splurging.
“Excessive borrowing depends on what you’re borrowing for. If it’s just for consumer spending, it can backfire.”
The economist also explained that high holiday spending creates a multiplier effect, which is why the economy typically spikes in the last quarter.
“But after the spending spree, households inevitably tighten their belts. It’s transitory, what goes out quickly passes, too,” he said.
Guardrails for the Season
As holiday spending spikes, here are four practical actions:
- Freeze “Buy Now, Pay Later” (BNPL) Impulses
BNPL use rises during the holidays and is linked to unplanned spending and financial risk. Based on a 2025 study published in Philippine journals, BNPL users exhibit frequent purchases and a high tendency for unplanned spending, along with moderate financial instability and perceived debt risk.
- Schedule Due Dates Aligned with Inflows
Call issuers to adjust billing cycles to match your 13th-month pay. This simple step prevents late fees and misaligned cash flows.
- Use the 3% Monthly Interest Cap as a Warning, not Permission
The BSP keeps credit card charges capped at 3% per month, but compounding can still sink budgets. Use your journal to flag regret risk before revolving balances.
- Prioritize Generosity with Intention
Giving is central to Filipino Christmas. According to a Nielsen survey, 83% of Filipinos prioritize spending on gifts for family during the holidays. Ring-fence daily giving, for example, ₱100 a day from September to December yields ₱12,000 by Simbang Gabi.
Peña-Reyes stressed the importance of building the habit of tracking expenses.
“This helps you make wiser decisions and hold back, when necessary, which in turn reduces financial stress,” he said.
He added that honesty is crucial.
“You have to be true to yourself, what can you really afford? Money is scarce and limited, so it should be used where it matters most.”
Instead of spending on fleeting consumption, he urged Filipinos to think long term.
“Imagine if you set it aside and invested it—on education, tuition, maybe even taking an MBA. Those are things that give returns. Consumption comes and goes, but investments expand your productive capacity, build your knowledge and skills, and eventually increase your income. It’s about having a growth mindset.”
As parols glow and Jose Mari Chan’s carols return, many Filipinos also feel a tightening in their wallets. Prices may be tame and policy rates lower, but holiday behaviors, more invitations, more digital taps, more obligations, drive overspending. A money-mood journal gives two superpowers at once: emotional clarity and financial control.
“Check your emotions, there are so many influences right now,” Peña-Reyes cautioned. “Be careful, and don’t spend just to impress others.”
In a country that celebrates longer and louder than almost anywhere else, that little notebook may be the most useful gift you give your future self.
He added that the season’s essence goes beyond material gifts.
“Christmas should be about prayer and gratitude to the Lord for giving us His Son, Jesus Christ our Savior,” he said.
