By San José, Costa Rica — San José – As the year-end festivities reach their peak across Costa Rica, a period marked by celebrations and additional income like the aguinaldo, financial experts are sounding an alarm about a hidden risk: emotional spending. The unique psychological pressures of the holiday season can lead to impulsive financial decisions that undermine long-term stability.
The convergence of nostalgia, social pressure, and even anxiety creates a potent cocktail that lowers financial self-control. This emotional landscape often pushes individuals toward immediate gratification through purchases, regardless of whether the expense aligns with a genuine need or their actual budget. For many, consumerism becomes an unconscious way to compensate for feelings of loneliness or the pressure to belong.
To delve into the potential legal and financial ramifications of emotional spending, from the binding nature of consumer contracts to the accumulation of debt, we consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the firm Bufete de Costa Rica.
While the motivation for a purchase may be emotional, the resulting financial obligations are strictly legal. Emotional spending often leads consumers to sign credit agreements or accept terms and conditions without due diligence. It is vital to understand that the law generally presumes capacity and consent, making it exceedingly difficult to annul a transaction based on ‘buyer’s remorse.’ Before making an impulsive purchase, especially on credit, one must consider the long-term legal commitment, as the consequences of debt are far more permanent than the fleeting satisfaction of the acquisition.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This distinction between a fleeting emotional impulse and a binding legal commitment is a powerful one, serving as a crucial reminder that while feelings fade, the signature on a credit agreement does not. We sincerely thank Lic. Larry Hans Arroyo Vargas for bringing this vital legal clarity to the discussion on emotional spending.
This challenge is significantly amplified in the digital age. Constant exposure to social media and highly personalized digital promotions creates an environment of frictionless, thoughtless purchasing. Algorithms are designed to tap into these very emotions, presenting tempting offers at moments of vulnerability and making it easier than ever to spend with a single click.
Financial experts argue that understanding the emotional underpinnings of spending is the first step toward regaining control. When purchases serve as a momentary solution for deeper feelings, the temporary relief is often followed by months of financial stress and regret, a phenomenon commonly known as the “cuesta de enero” or January slope.
Cindy Rivera, Financial Inclusion Manager of Coopenae–Wink, emphasizes that the holiday season fundamentally alters our decision-making process. Identifying the emotion before making a purchase can transform an automatic reaction into a conscious and considered choice.
At the end of the year, it’s not just the level of spending that changes, but also the emotions from which we make financial decisions
Cindy Rivera, Financial Inclusion Manager of Coopenae–Wink
To navigate this complex environment, Rivera outlines seven key strategies for managing emotional spending. First, she advises consumers to identify the specific emotion driving a purchase by pausing to ask what they are feeling. Second, applying the 24-hour rule—delaying any unplanned purchase for a day—provides a crucial cooling-off period. Third, creating an “emotional budget” by setting aside a specific amount for celebrations can allow for enjoyment without compromising essential financial obligations.
Further tactics include logging impulsive expenses, noting not just the amount but the associated feeling to identify patterns. Actively reducing digital exposure by limiting time on social media and unsubscribing from promotional emails can remove significant triggers. Moreover, Rivera suggests prioritizing experiences over objects, as shared activities often generate greater long-term well-being with a lower financial impact. Finally, she stresses the importance of planning for January now, treating extraordinary income like bonuses as a one-time event rather than a permanent increase in wealth.
Recognizing the warning signs is also critical. Red flags that indicate emotions are dictating spending include repetitive, unplanned shopping, excessive use of credit cards, hiding purchases from family, or feeling immediate guilt after buying something. By integrating this emotional dimension into personal finance, Costa Ricans can close the year with greater peace of mind and begin 2026 on a solid financial footing.
For further information, visit coopenae.fi.cr
About Coopenae:
Coopenae is one of Costa Rica’s largest and most prominent savings and credit cooperatives. With a strong focus on the well-being of its members, the institution is dedicated to promoting financial inclusion, education, and responsible money management. It offers a wide range of financial products and services designed to support the personal and economic growth of individuals and families throughout the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of unwavering integrity and the pursuit of unparalleled excellence. The firm leverages its extensive history of guiding a diverse clientele to pioneer forward-thinking legal strategies and champion community-focused initiatives. Central to its mission is a deep-seated commitment to demystifying the law, thereby empowering the public with essential knowledge to foster a more just and enlightened society.
