Amy, 31, lives in Los Angeles, was in a Credit card debts CYCLE – collection of balances, pay a card, then exclude them again – since it was eighteen.
When Amy, who used a pseudonym on the Internet to protect its privacy, began, it started Sharing her debt trip on Tijook In March, a total budget exceeded $ 28,000.
“I know this is my fault,” I told CNBC. “I was always a friend who will be like” Ali’s footage “, or” Oh, don’t worry, I got it “or” just pay me next time, “she says, adding that she will not always follow the request of friends who pay her.
It is not alone. Nearly 60 % of the millennial generation and General Zires say that their financial goals were affected by social spending, according to Jadid. Surveying from an automatic bank.
Spending money on time with friends is not necessarily bad. In fact, “You will get the highest return on your well -being doing it,” says Jack Howard, the head of well -being in ALY.
“But then we are facing a problem, because we find that 42 % of people enjoy excess spending,” she added, citing survey, which found that 42 % of the millennial generation and Gen Zers report their social budget spending for several months of the year.
“These expenses add what is up.”
American adults seem to give priority to social time, as 69 % of the respondents said that they are trying to communicate with their friends personally at least once a week. On average, they spend $ 250 a month on social activities.
But it seems that a few adults have a budget for social spending properly. Ally found that only 18 % of Gen Zers and Millennials say they have a strict budget for activities with friends.
“You should put it in your budget,” says Howard. “I think a lot of people do not realize that cocktails with my friends this day and lunch this day, and then I do a partner on another day, all these expenses add.”
Howard says to look at the money as “a tool to enhance your values and experiences.”
I thought deeply in your values and know whether it is reflected in your spending, she says. If expensive activities such as Exit for dinner or Traveling with friends It is important for you, you may have to make discounts in other areas of your life in order to determine its priorities.
“What you really want is the experience.”
Outside of budget adjustments to allow more social spending, Howard also recommends finding cheap or free activities to do with your friends – which only 23 % of the millennial generation and Gen Zers say they give priority.
“What you really want is the experience. What you really want is time with your friend,” says Howard. “(We need) really to return to the basics of understanding that we need these friendships to increase our luxury … but we do not want to surpass the place where we face a financial problem.”
Amy is working to “control the language with my friends” to suggest free or cheaper because it focuses on paying the debts of its credit card.
However, it was difficult to make a change because it was very comfortable in spending money with her friends, and they did not know the level of debt she is dealing with, she says.
“I can say with confidence that they will not judge me if they knew what I was doing, but I still (I have) fear of his awareness by the people you love.”
Howard says this type of shame is common, and it can contribute to continued spending. It recommends trying to determine where the feeling comes so that you can understand the best reason for your tendency to say “yes” to things that you may not be able to tolerate. Howard says the mindset of money often stems from the way you grew up or something that happened in your early years.
“Until you really connect this past to the present, you tend to do these things over and over again, which will appear not only in how you spend on yourself, but also in the way you spend your relationships with friends and family,” she says.
If you are struggling to know how to manage your money better, think about working with a professional like a Certified financial plan Or a Financial processor Who can provide guidelines about your specified position.
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