Up to 60% of both millennials and Zoomers admit that their social lives interfere with their financial goals

Emmy, a 31-year-old Los Angeles resident, has been stuck in a credit card debt cycle since she was 18: accumulating debt, paying it off, and then spending it all again.

When she started sharing her story on TikTok in March, her debt was over $28,000. "I know it's my fault," says Emmy. "I've always been that friend who says: "Don't worry, I'll pay, you can return it later." And she didn't always remind her friends to pay her back".

This is far from an isolated story. According to a survey Ally Bank, almost 60% of millennials and Gen Z admit that their financial goals are unattainable due to spending on social life.

According to this study, 69% of adults try to meet with friends at least once a week, spending an average of $250 per month. However, only 18% of young people have a clear budget for such meetings.

"Just budget for it," advises Jack Howard, director of the department. Financial wellness at Ally. — Many people really don't realize that cocktails with friends today, brunch tomorrow, and ordering food after work add up to a significant amount."

42% of those surveyed admitted that they regularly spend more than planned on social activities.

How to balance friendship and finances?

Howard advises viewing money as a tool that should reflect your values and priorities. If travel or dinners with friends are important to you, you'll have to cut spending in other areas.

In addition, it's worth looking for cheaper or free ways to spend time – only 23% of young people prioritize this. "In reality, we're not looking for expenses, but for experiences and time with friends," the expert explains.

Why do we agree to expenses that worsen our financial situation?

According to Howard, shame is a common phenomenon that pushes people to overspend. It often stems from childhood or family experiences and manifests in relationships with friends and loved ones.

The solution is to understand where this feeling comes from and learn to make financial decisions differently. If it's difficult to cope on your own, you can consult a financial planner or even a financial therapist.