ORLANDO, Fla. – Friends make life richer, but sometimes, it’s our wallets that pay the price. A new survey shows Gen Z and millennials are spending hundreds each month just to stay connected.
From toasting a promotion, to dining out, to dropping thousands on destination weddings, the cost of connection is rising! According to a New Ally Bank survey, Gen Z and millennials spend an average of $250 a month on social activities, and nearly half have skipped major events because they couldn’t afford them.
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The financial FOMO report from Empower finds that six in 10 young adults feel pressure to spend to keep up with friends.
Men tend to spend more, but women report more stress. Nearly a third of women say social spending hurts their savings or makes paying off credit cards harder.
And one in five say finances have ended a friendship. Experts say the secret to survival is to plan and prioritize. Try what financial coaches call “budget-friendly socializing.” Hand out friendship coupons they can collect for a homemade dinner together or movie night in or host a potluck, board-game night, or walk-and-talk meetups instead of happy hour.
Experts say it’s important to be honest about your limits. And remember, memories don’t come with receipts. Because in the end, friendship shouldn’t be a budget buster.
And here’s a smart tip to stay connected without breaking the bank, try a “skill swap.” Trade what you’re good at instead of paying for it. Maybe you watch a friend’s kids while they fix your computer, or you take photos for their small business while they help you with car repairs. Friendship doesn’t have to be expensive, just creative.
Contributors to this news report include: Marsha Lewis, Producer; Bob Walko, Editor.