Financial Pressure Strains Friendships for Gen Z and Millennials

CHARLOTTE, N.C., July 30, 2025 /PRNewswire/ — A new survey from Ally Bank reveals that financial pressures significantly affect the social lives of younger generations. The findings show that 44% of Gen Z and millennials have avoided major social events due to costs, impacting their overall financial health and wellness.

Released prior to International Friendship Day, The Friendship Tab survey indicates that while three in five young adults acknowledge that social spending influences their financial goals, 69% still prioritize in-person connections with friends on a weekly basis. This highlights the struggle many face in balancing friendships with significant financial milestones like paying off student loans or buying a house.

Lindsay Sacknoff, Head of Consumer Banking at Ally, emphasized that it is possible to maintain meaningful relationships while managing finances. “Using tools like savings or spending buckets to establish a ‘friendship fund’ can help relieve some of the stress associated with social expenses. Planning activities that bring joy, such as brunches or birthday trips, can keep you financially stable while forging lasting memories,” she said.

The survey reveals nearly a quarter of respondents fear they will miss out on social connections due to money constraints. Additionally, 42% admit to overspending on social activities during certain months, with 18% doing so every other month. Jack Howard, Head of Money Wellness at Ally, highlighted the importance of open conversations about finances among friends. “Discussing money openly can remove the stigma surrounding financial struggles and lead to discovering affordable ways to enjoy time together,” he said.

Friendship remains essential for these generations, with 23% finding ways to connect without spending money, such as ‘no spend hangs.’ However, overspending is becoming common, and many admit they do not budget properly for social interactions.

Gender disparities are also significant. Thirty percent of women report difficulties saving due to social spending compared to 22% of men. The impact of social costs seems to affect women more emotionally, with many finding their financial peace of mind compromised through social obligations.

Ally Bank has introduced a free wellness program offering workshops that aim to help individuals assess their financial mindsets and how these relate to their spending habits. The company seeks to meet people where they are, aiding in developing better money habits for a more secure financial future.