August 18, 2025
A new survey highlights the reality of social spending and its impact on a young person’s finances.
Despite a shaky economy and rising costs, millennials and Gen Z still prioritize weekly hangouts with friends, even if it hurts their pockets.
In honor of International Friendship Day, Ally Bank’s Friendship Tab survey revealed that while 3 in 5 young adults say social spending impacts their financial goals, 69% still make time for weekly in-person connections with friends. The survey sheds light on the financial challenges young adults face in balancing the cost of maintaining friendships with major financial goals, like paying off student loans or saving for a home.
For Gen Z and millennials, enjoying friendships often comes with a financial price. The survey found that 44% have skipped major social events due to cost, and 1 in 4 say social spending makes saving difficult. On average, young adults spend around $250 per month on friend activities. Over six months, the median spending is $750 for both men and women, although men tend to spend more on average than women ($1,775 vs. $1,250).
“I absolutely believe you can have both –- meaningful friendships and healthy finances -– it just takes a little planning,” said Lindsay Sacknoff, head of Consumer Banking at Ally. “Using tools like our savings or spending buckets to set up a ‘friendship fund’ can make it easier to say yes to plans without stress. 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.”
Spending time with friends in paid settings remains the norm for young adults. About 52% of Gen Z and millennials see 1 to 3 friends regularly, with their favorite activities including dining out or visiting a bar (72%), enjoying the outdoors (56%), and attending birthday celebrations (50%). In fact, 32% hit a restaurant or bar with friends at least once a week. There are, however, 23% of Gen Z and millennials who find ways to spend time together without spending money, in settings called “no spend hangs.”
Although managing money is a key part of adulting, many Gen Z and millennials admit to overspending on their social lives. Just 18% stick to a strict budget for friend activities, while 59% say their financial goals are affected by these social expenses.
Young women are feeling the financial strain even more, with nearly 1 in 3 (30%) saying social spending makes it hard to build savings (compared to 22% of men). Around 27% say it hinders saving for emergencies (compared to 20% of men), and a quarter report that it makes paying off credit card bills each month challenging (vs. 16% of men).
Spending time with friends can be crucial for a young adult as it provides emotional support, stress relief, and a sense of belonging in an increasingly fast-paced and digital world. It’s why nearly a quarter of Gen Z and millennials worry about missing out on social connections because of money, with 42% overspending on friend activities a few months each year and 18% doing so every other month.
While FOMO is a real thing, it’s not worth breaking the bank over. True friends understand when money is tight.
“FOMO is real and can lead to overspending that harms our financial well-being,” said Jack Howard, head of Money Wellness at Ally. “Be open with your friends if you can’t swing that brunch or birthday trip. You might be surprised to learn they’re in the same boat. Discussing money openly with friends can help dismantle the shame around financial struggles and is a great way to explore affordable ways to spend time together. Plus, the ultimate BFF is someone who respects your relationship with money.”
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