MORE young people are saying that the cost of their friendships is putting too much strain on their wallets.
A new survey has found that nearly half of young people have been forced to cut back on social time because of how much it costs.
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The greater cost of living is now said to be affecting young people’s friendships.
A new survey commissioned by Ally Bank shows that 44% of Gen Z and Millennials have skipped a social event to save money.
At the same time, more than half, or 59%, said that their financial goals are impacted by their desire to hang out with friends.
Despite this, only 18% said they budget for activities with friends.
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Younger generations are still fighting to see their friends, but data shows that the fear of financial consequences is persistent.
This has caused severe anxiety among Gen-Z and millennials, internally and externally.
One in five people asked say that differences in financial lifestyle compared to their friends have contributed to a falling out.
And nearly a quarter (24%) say that they felt anxious about their financial situation and how it is different to friends’.
While 17% said there have been times when they felt they couldn’t be honest with friends about their finances.
Young people are also looking at external pressures for why things are getting more expensive with friends.
Roughly one in four believe tariffs and inflation have made the problem worse.
DEEP DIVE
To break this down, there is a notable difference in how financial worry affects different genders.
For example, women are said to feel the burden of expensive friendships more when compared to men.
Out of those asked, 30% of women say social budgeting makes building up savings difficult, versus 22% of men.
What young people spend their money on
By activity, the most popular is going to a restaurant or bar at 72%, spending time outdoors at 56% and going to birthdays at 50%.
The survey found that 23% of Gen Z and millennials are engaging in hangouts that don’t require any money to be spent.
And 32% say that they go to a restaurant or bar at a minimum of once a week.
The average total cost for friendships is more expensive for men, the survey found, standing at $1,775 over six months.
This is compared to $1,250 for women, but the median cost for both men and women for six months stands at $750 each.
For women, 27% say friendship spending makes it difficult to save for emergencies, compared to 20% of men.
Despite all of this, there are signs that, despite financial pressures, young people are not giving up.
Out of those asked, 69% still prioritize in-person connection at least weekly, even if the balancing act is getting harder to achieve.
Lindsay Sacknoff, Head of Consumer Banking at Ally, said that the only way to beat this is to be proactive when it comes to your money.
She said: “I absolutely believe you can have both – meaningful friendships and healthy finances – it just takes a little planning.
“Tracking your spending and planning ahead for things that bring you joy, from weekly brunch to birthday trips, will help you stay financially grounded while making lasting memories.”
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