People need friendship and socialization. Various studies in the past two decades have found links between social isolation and heart disease, stroke and Type 2 diabetes. Hanging out with friends is good for not only our mental health but our physical health. Unfortunately, if your friend group decides their idea of a good time is concerts, pricey immersive events, or even upscale dinners and drinks, that socialization may not be good for your wallet.
Millennials and Gen Z, in particular, struggle with finding a balance between socializing and saving money. A recent Ally Bank survey revealed that 59% of people in these generations have seen their financial goals blindsided by activities with friends. It doesn’t have to be that way. “I absolutely believe you can have both — meaningful friendships and healthy finances — it just takes a little planning,” Lindsay Sacknoff, head of consumer banking at Ally, said in a press release.
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Here are steps you can take to ensure your financial goals and values are in alignment so you’re spending on what matters most to you.
Budget for Entertainment
Only 18% of young adults polled said they have a specific budget for activities with friends.
Allocating money toward dinner, drinks, concerts and other events each month can help keep your spending on track. Often, just being more mindful of your spending can help you reduce costs.
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Be Honest About Your Financial Situation
Of those who have a budget, 42% admitted to overspending several times a year. Learn how to say, “It’s not in my budget right now” if you can’t afford a proposed activity or night out.
Loud budgeting, where you aren’t afraid to tell others that a specific expense isn’t in alignment with your financial goals and values, isn’t just a TikTok trend. It’s an effective way to set boundaries on how much you’re willing to spend and what you’re willing to spend on. You may even find other members of your friend group in agreement, but no one wanted to be the first to speak up.
Ask for Separate Checks
If you don’t want to miss a night out or Sunday brunch with friends, scope out the menu in advance and choose options within your budget. Don’t be afraid to ask for separate checks. Redditors largely agree, with one user writing, “Nothing wrong with wanting a separate check!”
It might even take some of the pressure off members of your group who want a pricier entrée or the mimosa flight but want to make sure others don’t get stuck with the bill. “I always ask for a separate check because I’m usually the expensive one,” said one Redditor. To make it easier on the server, ask when you order, not when you’re ready to pay.
Plan Free or Low-Cost Group Activities
If even avocado toast and black coffee would bust your budget right now, suggest some free activities with your friends.
Game night at someone’s house, and everyone brings a drink or snack? A hike through a local state park? S’mores around a backyard firepit? Search for free local events in your community too, from concerts to street fairs. True friends know it’s who you’re with, not how much you spend, that matters.
Save for Big Events
Everyone deserves to splurge once in a while. Start a separate online savings account exclusively for special events with friends.
Ally Bank, for instance, allows savings buckets, so you can allocate money for upcoming special events, birthdays or vacations while also continuing to build your separate emergency savings. If you contribute just $10 per month to an “entertainment” bucket, by the end of the year, you may be able to afford a concert or a Broadway show without derailing your other financial goals.
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This article originally appeared on GOBankingRates.com: 5 Money Tips for Gen Z and Millennials To Keep Socializing From Killing Their Finances
