Do these sentences resonate? 👇
- "I'm just trying to keep up with my friends, but it’s making me broke."
- "I don't want to miss out on fun experiences."
- "I feel like my friends don’t get my financial situation."
Feeling pressured to match your friends' spending can result in serious financial strain and anxiety.
Let's think about how these friendships affect our wallets and our well-being.
“The ornament of a house is the friends who frequent it.” — Ralph Waldo Emerson
According to a Credit Karma study:
- Overspending Friends: 36% of young people have friends who make them overspend.
- Debt Troubles: 88% of millennials and 80% of Gen Z who overspend due to friends have taken on debt.
- Popular Spending Habits:
- Millennials: dining out (43%), drinks/nights out (37%), trips (22%), birthday celebrations (21%).
- Gen Z: dining out (37%), clothing (36%), drinks/nights out (32%), trips (24%), self-care (20%).
- Social Pressures:
- Not wanting to feel left out (31% of Gen Z, 32% of millennials).
- Wanting to keep up with friends' lifestyles (29% of both groups).
- Wanting to please friends (29% of Gen Z, 28% of millennials).
Young adults value friendships with people in a similar income bracket, with 35% of Gen Z and 29% of millennials preferring friends who earn as much as them.
We can find a balance between our social lives and financial health. First understanding our interactions with money and friends can help.
Some existing dynamics with friendships and money:
- Spendy Friends: They might be fun, but they push you to overspend and accumulate debt.
- Financial Alignment: Many young people prefer friends with similar financial situations to avoid stress and maintain balance.
"Friendship is born at that moment when one person says to another, ‘What! You too? I thought I was the only one.’" - C.S. Lewis
What’s YOUr spending relationship with your friends?
Ask yourself:
- How do YOUr friendships impact YOUr spending habits?
- In what ways do social activities with friends affect YOUr budget?
- How often do YOU find yourself spending more money with friends?
- What strategies do YOU use to manage YOUr finances while keeping friends?
- Are there any trends on what YOU and YOUr friends spend money on?
"Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down." - Oprah Winfrey
Click on the dropdowns below to see the easy action items:
Do one of these things TODAY 👇
If you have spendy friends:
- Set Clear Boundaries: Talk to them about your financial limits. Be honest and assertive.
- Suggest Low-Cost Activities: Propose budget-friendly hangouts like picnics, movie nights at home, or free events.
- Stick to Your Budget: Before going out, decide how much you’re willing to spend and stick to it.
- Find Financially Aligned Friends: Seek out friends who share similar financial goals and habits.
If you're feeling financial FOMO:
- Practice Gratitude: Focus on the value of experiences, not just spending.
- Find Joy in Simple Pleasures: Enjoy activities that don’t require spending, like hiking, reading, or cooking at home.
- Affirm Your Financial Goals: Regularly remind yourself of your financial priorities and why they matter.
Say one (or all) of these affirmations out loud 👇
- "I am deserving of friendships that support my financial well-being."
- "I can enjoy meaningful connections without overspending."
- "I respect my financial boundaries and communicate them clearly."
- "I attract friends who understand and respect my financial goals."
- "I release any pressure to overspend and embrace financial peace."
Channel that feeling 👇
Feeling fearful? That’s okay. Give yourself grace. Most of us don’t learn these things in school. You just took the first step, so be kind to yourself. You’re already making progress.
Feeling confused? Start with a basic guide to personal finance and work your way up.
Feeling excited? Dive deeper into money management and explore more financial topics here.
Some vibes to close us out
Keeping friendships strong without going broke is key.
Set boundaries, find budget-friendly hangouts, and talk openly about money.
Quality time beats the amount spent.
Cheers to having a squad that gets both our hearts and wallets!
YOU got this. 💭✨
Sources
- "Gen Z and millennials are losing friends over money, study finds." Credit Karma (2023).
- "Can Gen Z make friends in the pandemic era?" BBC (2023).
- "How many friends do you really need?" New York Times (2023).
Dig into this topic deeper by signing up for our FREE newsletter.
You'll be able to download the reflection worksheet to put all these actions into one page.
Once you've signed up, come back to this page and download your new go-to resource.
This post is for subscribers only
