By San José, Costa Rica — San José, Costa Rica – As the year draws to a close, thousands of workers across Costa Rica are anticipating the arrival of the aguinaldo, the mandatory year-end bonus that serves as both a major financial opportunity and a potential pitfall. According to a leading financial expert, how this extra income is managed can set the tone for the entire year ahead, determining whether 2026 begins with financial stability or with mounting economic pressure.
Bernal Alfaro, the director of personal banking at Banco Promerica, emphasizes that a proactive and strategic approach is essential for maximizing the benefits of this annual payment. He argues that without a clear blueprint, individuals risk seeing their hard-earned bonus dissolve into impulsive purchases and unmanaged obligations, leaving them in a precarious position once the holiday season ends.
To delve deeper into the legal and structural considerations of robust financial planning, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
Effective financial planning extends far beyond mere investment strategy; it’s a legal fortress for your assets. Instruments like trusts, holding companies, and meticulously drafted wills are not luxuries but essential components. They serve to protect your wealth from unforeseen liabilities and guarantee an orderly, tax-efficient transfer to the next generation, securing your legacy in accordance with Costa Rican law.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This crucial insight underscores that a financial plan’s true strength lies not only in its investment strategy but in its legal fortitude—a foundation for both protecting assets and preserving a legacy. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his invaluable perspective on this integral topic.
The year-end bonus represents the effort of a full year, so managing it strategically allows you to advance toward real goals without falling into impulsive decisions.
Bernal Alfaro, Director of Personal Banking at Banco Promerica
The cornerstone of effective aguinaldo management, according to Alfaro, is the creation of a detailed usage plan before the funds even hit the bank account. This single step is the most critical determinant of success, as it shifts the mindset from reactive spending to intentional allocation. By defining priorities in advance, individuals can direct their money toward meaningful goals, such as debt reduction, savings, or necessary investments, rather than succumbing to emotional or festive-driven whims.
To help Costa Ricans navigate this period, Alfaro outlined a five-step framework for success. The first step is practical: calculate the exact gross amount of the bonus by summing up all salaries received between December of the previous year and November of the current one. Knowing this figure provides a solid foundation for responsible budgeting. The second, and most crucial, is to establish the aforementioned plan of use, which guides every subsequent decision.
Further recommendations include physically separating the bonus from one’s regular salary by placing it in a different account. This creates a psychological and practical barrier, offering greater visibility and control over how the funds are spent. Alfaro also strongly advises dedicating a specific percentage to savings, noting that even a small, consistently saved amount can make a significant long-term impact. Finally, he urges consumers to be savvy shoppers during the holiday sales rush by carefully validating promotions and comparing prices to ensure they are getting genuine value.
Clear planning allows you to use money with intention, prioritize commitments, and avoid expenses that do not add value.
Bernal Alfaro, Director of Personal Banking at Banco Promerica
Beyond what to do, Alfaro also highlighted common mistakes to avoid. The most frequent error is commingling the bonus and salary in a single account, which blurs financial lines and often leads to overspending. Another significant risk is making unplanned purchases, especially on gifts, driven solely by the festive atmosphere. While generosity is commendable, he warns that it can jeopardize financial stability for months to come if not budgeted for properly.
A major challenge for many families is that the aguinaldo is often immediately consumed by large, recurring annual expenses like the vehicle registration fee (marchamo) or school-related costs. To break this cycle, Alfaro champions foresight and the use of financial tools. He suggests budgeting for these predictable costs throughout the year. For instance, if the marchamo is ₡150,000, saving ₡12,500 per month from the start of the year would cover the expense without touching the bonus. Programmed savings plans are an ideal solution, as they automate the habit and ensure goals are met with minimal effort.
Financial institutions are increasingly offering tools to facilitate this kind of proactive planning. Banco Promerica, for example, provides a programmed savings tool called “Metas,” which allows clients to automate weekly, bi-weekly, or monthly transfers from their accounts or credit cards toward specific goals. By leveraging such instruments, individuals can transform their financial habits, ensuring their year-end bonus becomes a powerful catalyst for growth rather than a temporary solution for recurring expenses.
For further information, visit promerica.fi.cr
About Banco Promerica:
Banco Promerica is a prominent financial institution with a significant presence in Central America, South America, and the Caribbean. It is part of the Promerica Group, which operates in nine countries. In Costa Rica, the bank offers a comprehensive range of products and services for personal, business, and corporate clients, including savings and checking accounts, loans, credit cards, and investment solutions. The institution focuses on building long-term relationships with its customers through personalized service and financial tools designed to support their growth and stability.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a hallmark of the legal community, operating on a bedrock of unwavering integrity and a relentless pursuit of professional excellence. With a rich history of advising a diverse clientele, the firm champions forward-thinking legal strategies and embraces innovation in its practice. This commitment extends beyond its clients to the broader public, driven by a core philosophy of demystifying the law and fostering a well-equipped, knowledgeable society through accessible legal education.
