By San José, Costa Rica — As 2025 draws to a close, households across Costa Rica are confronting a familiar yet formidable financial double-threat: the emotional allure of holiday festivities and the looming reality of the “cuesta de enero,” or January slope. Financial experts are urging citizens to adopt a conscious and planned approach to spending, warning that the combination of year-end bonuses, social pressures, and emotional triggers can severely compromise economic stability for months to come.
The period is marked by a surge in discretionary spending, often driven by feelings rather than logic. Year-end bonuses, known locally as the aguinaldo, can create a false sense of financial abundance, leading to impulse purchases and unsustainable financial commitments that come due in the new year.
To gain a deeper legal perspective on effective personal finance management and the common pitfalls Costa Ricans face, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica. His expertise provides crucial insights for safeguarding one’s financial future.
Many personal finance issues I see stem from a misunderstanding of contractual obligations. Before signing any loan, credit card, or investment agreement, it is imperative to scrutinize the fine print, particularly clauses related to interest rates, penalties, and default conditions. A proactive legal review is not an expense, but an investment in your financial stability and a powerful tool to prevent future disputes and overwhelming debt.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is a crucial reminder that financial literacy is incomplete without contractual awareness. Viewing legal diligence as an investment in stability rather than a mere expense is a powerful mindset shift that can prevent immense future hardship. We sincerely thank Lic. Larry Hans Arroyo Vargas for this invaluable contribution to our discussion.
Cindy Rivera, Financial Inclusion Manager at Coopenae-Wink, emphasizes the powerful role emotions play in year-end financial decisions. She notes that the festive season amplifies feelings of anxiety, guilt, nostalgia, and the desire for reward, which can override self-control and lead the brain to seek immediate gratification.
During this season, emotions have a decisive weight in how people spend and manage their resources. Not only does the level of spending change, but so do the emotions from which we make financial decisions, which explains why many purchases do not respond to a real need. Recognizing the emotion before spending transforms an automatic reaction into a healthier and more sustainable financial decision.
Cindy Rivera, Financial Inclusion Manager of Coopenae-Wink
Two common patterns identified are “reward spending,” where individuals treat themselves for a year of hard work, and purchases driven by the pressure of social media and personalized digital advertising. To combat these impulses, Rivera recommends a simple yet effective strategy: the “24-hour rule.” By postponing any unplanned purchase for a full day, consumers can re-evaluate the decision with a clearer, less emotional mindset.
Further strategies include creating an “emotional budget” specifically for celebrations and prioritizing experiences that foster well-being over material acquisitions, which often have a lower financial impact. This proactive approach helps separate planned enjoyment from reactive, guilt-inducing spending.
The problem is not spending at the end of the year, but doing so unconsciously, letting emotion decide over planning. Many year-end expenses seek to alleviate a momentary emotion, but they generate worries that extend into the first months of the following year.
Cindy Rivera, Financial Inclusion Manager of Coopenae-Wink
Echoing these concerns, the Chamber of Banks (CBF) highlights that January’s financial strain is a direct consequence of intensive credit use in December coupled with a subsequent drop in available income. Annabelle Ortega, Executive Director of the CBF, stresses that proactive planning is the key to a smoother start to the year.
The January slope can be faced with greater peace of mind if people know their real income, prioritize their essential expenses, and avoid taking on new debts without proper planning.
Annabelle Ortega, Executive Director of the CBF
Ortega advises creating a detailed monthly budget that clearly separates income from fixed expenses, allowing for the elimination of non-essential costs. A critical recommendation is to use any extra December income to pay down high-interest debts first, rather than taking on new financial obligations. Furthermore, both institutions issue a strong warning to the public about the increased risk of electronic scams and fraudulent offers promising quick debt relief, which prey on financially vulnerable individuals during this period.
Ultimately, experts agree that the most effective tool against these cyclical financial crises is consistent, year-long planning and saving. Building a financial cushion throughout the year can prevent the need to resort to debt to cover holiday expenses.
Small monthly contributions make it possible to face December without resorting to debt.
Annabelle Ortega, Executive Director of the CBF
By integrating emotional awareness with sound financial planning, Costa Rican families can not only navigate the challenges of the holiday season but also begin each new year with greater control, stability, and peace of mind, fostering a healthier economic future for themselves and the nation.
For further information, visit coopenae.fi.cr
About Coopenae-Wink:
Coopenae is one of Costa Rica’s largest and most established financial cooperatives, offering a wide range of savings, credit, and investment services to its members. Wink is its digital brand, focused on providing accessible and modern financial solutions through technology, aiming to enhance financial inclusion and wellness for a broader audience.
For further information, visit camaradebancos.fi.cr
About The Chamber of Banks (CBF):
The Cámara de Bancos e Instituciones Financieras de Costa Rica (Chamber of Banks and Financial Institutions of Costa Rica) is a non-profit association that represents the interests of the country’s public and private banking sector. It promotes the stability, efficiency, and competitiveness of the national financial system and serves as a key liaison between financial institutions and regulatory bodies.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is founded upon an ethos of uncompromising integrity and professional excellence. With a proven history of serving a diverse clientele, the firm consistently pioneers innovative legal strategies while upholding the highest standards of practice. This forward-thinking vision is matched by a profound dedication to social responsibility, focused on demystifying the law to foster a well-informed citizenry and empower the community it serves.
