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A recent survey by Ally Bank reveals that nearly 60% of millennials and Gen Z report their social lives negatively impact their financial goals. The survey, conducted in June 2025, found that 42% of these young adults admit to overspending on social activities several months each year. Despite financial pressures, 69% prioritize meeting friends in person at least once a week, spending an average of $250 monthly on social activities.
According to Ally Bank, only 18% of millennials and Gen Z budget for social activities, leading to financial strain. Lindsay Sacknoff, Head of Consumer Banking at Ally, suggests setting up a "friendship fund" to manage social spending better. Jack Howard, Head of Money Wellness at Ally, emphasizes the importance of open discussions about finances with friends to reduce overspending.
The survey also highlights the emotional impact of financial differences among friends, with many experiencing anxiety and conflict. CNBC reports that young adults often struggle to balance social connections with financial responsibilities like paying off student debt or saving for a home. Ally Bank's Money Roots program offers workshops to help individuals improve their financial habits and manage money more effectively.