Introduction
December is, for many Mexican families, the most emotional month of the year. However, it is also one of the costliest due to a series of religious celebrations, social commitments, and deeply rooted traditions. This period of intense spending often extends into early January, testing the financial stability of households, especially in an economic context marked by inflation, debt, and stagnant wages.
Key Celebrations and Their Costs
Día de la Virgen de Guadalupe (December 12)
The celebration of the Virgin of Guadalupe begins early in December. While not all families participate equally, many allocate resources for mañanitas, food for guests, candles, flowers, or small gatherings. In popular colonias and neighborhoods, these celebrations can involve community cooperation but also individual expenses that, though seeming minor, accumulate. Between food, drinks, and snacks, a family might spend several hundred or even thousands of pesos in a single day.
Posadas (Starting December 16)
From December 16, posadas arrive, blending religion, togetherness, and consumption. School, work, family, and neighborhood posadas multiply commitments. Each involves cooperation for food, piñatas, sweets, drinks, and often gift exchanges. Though these are fragmented expenses, their total impact is often underestimated. An average family might spend several thousand pesos on posadas alone, especially if they have school-aged children or actively participate in social gatherings.
Christmas Eve Dinner (December 24)
The Christmas Eve dinner, associated with family reunion, has transformed into a display of abundance. Turkey, leg, cod, romeritos, drinks, desserts, and decorations represent one of the highest expenditures of the month. Depending on family size and menu, this dinner can range from moderate amounts to figures easily surpassing weekly or even bi-weekly income for many households. This also includes costs for new clothes, personal grooming, and transportation.
New Year’s Eve Dinner
The spending cycle continues with the New Year’s Eve dinner. While simpler for some families, it can be another significant event for others, featuring special foods, alcoholic drinks, and prolonged gatherings until the early hours of January 1. This double expenditure in less than a week is often financed by rapidly depleting savings or credit card usage.
January’s Financial Pressures
Traditionally perceived as a month of adjustment, January actually begins with new economic pressures. The purchase of the Rosca de Reyes and gifts on January 6 incurs another significant expense. Buying a rosca for family, work, or friends has become increasingly expensive, and this is compounded by gifts for children. Many households juggle multiple traditions simultaneously: Santa Claus, the Christ Child, and the Three Kings, multiplying expenses and extending the financial impact of December.
Adding to this scenario is a crucial factor in understanding the financial fragility of households: January also brings property tax and water service payments. To secure early payment discounts offered by municipal governments and utility operators, families must cover these services in the first few weeks of the year. This means that just as income is under pressure and December’s expenditures are being absorbed, fixed obligations appear that allow no room for improvisation.
The Realities of Financial Planning
This journey highlights an uncomfortable reality: the so-called “January squeeze” is not an isolated or inevitable phenomenon but the result of accumulated decisions and, in many cases, limited financial literacy. Lack of planning, normalization of debt, and absence of family budgets turn December into a trigger for prolonged economic stress.
Discussing financial literacy is not about extreme frugality or eliminating traditions but learning to anticipate, prioritize, and make informed decisions. It involves acknowledging that celebration comes at a cost and not all spending is essential. It means teaching, from an early age, to differentiate between want and need, plan for future payments, and understand the consequences of misused credit.
Key Questions and Answers
- Q: Why is December such a costly month for Mexican families? A: December is costly due to numerous religious celebrations, social commitments, and deeply rooted traditions like the Virgin of Guadalupe’s Day, posadas, and Christmas Eve dinner.
- Q: What are some of the key celebrations in December and their associated costs? A: Key celebrations include the Virgin of Guadalupe’s Day, posadas starting from December 16, and the Christmas Eve dinner. Costs can range from hundreds to thousands of pesos per celebration.
- Q: How does January add to the financial strain? A: January brings additional expenses like the Rosca de Reyes and gifts, along with property tax and water service payments, further straining family finances.
- Q: What role does financial literacy play in managing December’s expenses? A: Financial literacy helps families anticipate, prioritize, and make informed decisions about spending, distinguishing between wants and needs, and understanding the implications of credit use.
