Today’s Financial Message Just for you, {{ first name | friend}}
Remember when holiday bonuses were actual money, not a $25 gift card to a restaurant you'd never choose yourself?
Our parents got checks that covered January's mortgage. We get branded swag and suddenly everyone's excited about free pizza like we're in college again… Continue Reading
A $30 Target gift card and a pizza party seems to be the new normal for ‘Holiday bonuses’ these days.
Way back in the day, like in Little Women times - companies would traditionally present employees with a Christmas bonus - a turkey, some candy, a watch or gold coins. But in 1902, J.P. Morgan & Co. went way out by giving the staff a full year's salary, thus setting the next 5 generations up for disappointment because boy, did that not last long. (HuffPost)
Even in 1988, the Christmas Bonus was dying out faster than Crystal Pepsi did-
“A bonus equal to one month’s pay is equal to a raise of about 8%, yet in 1989, the average pay increase is likely to be between 4% and 5%. So it doesn’t make sense to give a big bonus and then spend less on salaries.” - Dec 18, 1988 LA Times
Just for fun, we checked what Gen Xers are saying on Reddit, and found that even Clark Griswold's Jelly of the Month Club 'bonus' from National Lampoon's Christmas Vacation looks better than what some of us are getting.
Worst Holiday Bonus Gifts, According to Reddit
My cousin works at the Cleveland Clinic and said he received a rock for his holiday bonus… so the nurses could “throw away their frustrations” - ElectricalBar8592
Oof. That’s worse than the Accounting Department logo fleece blanket I received a few years back. I don’t even work in accounting. lol - heltyklink
Last year I got a wooden ornament with my hospital’s name on it and had to pay to attend the holiday party I organized and work the whole time making it fun for others. - raindorpsonroses
Source: Reddit
Poll:
So what about you? Are you in the shrinking minority that is actually getting a bonus this year?
If You Really Do Get an End-of-the-Year or Holiday Bonus, You Can Use it to Get Ahead
If you’re one of the lucky ones who actually will see some extra money in your account at the end of the year, we put together some smart ideas for how you can use it to shore up your financial health a bit more - plus leave room for a bit of fun.
The difference between wasting a bonus and transforming your financial life comes down to intentional spending.
Before you buy anything, run it through this checklist:
Do I really need this?
Will this provide value beyond immediate gratification?
Will this give back to me later in terms of time, money, energy, or peace of mind?
Will this reduce stress or improve my life next year?
Does this align with my financial goals?
If the answer to most of those questions is no, keep looking…
Read the whole article for all 9 ideas and some helpful allocation breakdowns…
Did we miss the mark? Here are a few more articles tangentially related to Holiday Bonus time that could help you…
“Who needs a gift card - I’m getting a raise!”
“I Didn’t Get a Holiday Bonus, But I Expect a Salary Increase in 2026.” Excellent news - but before you buy that Lamborghini, take a few financial security steps.
“Not this time - I’m nailing my PR in January.”
“I Keep Getting Overlooked at Work, But I Want That Executive Bonus.” Maybe you’re missing something - tighten up your skills in every area and your boss will come to you.
“Being in this car makes me forget my depressing debt weight.”
“I Got a Bonus and I’m Blowing it All on New Wheels!” We’re not saying don’t have any fun, but will getting a leather bound interior land you further in hock on your debt payments?
I mean, seriously - a rock? That’s just cruel.
Did you know…
That on this day 48 years ago (oh man, that hurts to say) Saturday Night Fever had it’s premier, which launched John Travolta’s career into stardom.
What did you think of today's newsletter?
*overdraft fees source: https://finhealthnetwork.org/research/overdraft-nsf-fees-bigger-burden-than-previously-estimated/