As Blue Monday bites, new research by Wealthify has found that, as the cost-of-living crisis continues to loom large, over half (51%) of Gen Zs admit they feel on the fringes of their friendship group because of their financial situation; more than any other generation.
Half of Gen Zs (50%) also reported feeling pressure to attend social events to ‘save face’ and then suffering financially as a result.
Out in the cold
Almost half of Gen Zs (49%) specifically said they have been excluded from social plans because of their financial situation.
Brits are collectively spending £5.8 billion a month on maintaining a social life and £3.8 billion of their monthly personal income on ‘fitting in’ and keeping up appearances.
42% of Gen Z and Millennials sometimes, frequently or always miss social events because of money worries, compared to just a quarter (24%) of Baby Boomers. Three in ten (31%) UK adults have felt under pressure to socialise to ‘save face’ and have suffered financially as a result. Delving into why these people put themselves under pressure to socialise, both mentally and financially, the principal reason for Gen Z was ‘maintaining friendships’ (46%). Other factors are boredom and loneliness (28%), and social media hype (16%).
| What heightens the pressure to attend social events that you then suffer from financially? | Gen Z | Millennials | Gen X | Boomers |
| Maintaining friendships | 46% | 49% | 52% | 54% |
| Fear of missing out (FOMO) | 30% | 34% | 25% | 28% |
| Anxiety about being bored or lonely | 28% | 25% | 22% | 21% |
| Feeling self-conscious | 22% | 24% | 19% | 38% |
| Fear of being ostracised | 16% | 22% | 23% | 23% |
| Direct pressure from peers | 16% | 22% | 15% | 11% |
| Peers’ social media hype | 16% | 10% | 7% | 7% |
The mental toll
Of those who have had to miss social events because of money worries, 1 in 3 (35%) Brits reported feeling down as a result. Almost a third (28%) of Gen Zs said that missing social events due to money worries had poorly affected their mental health and it was significantly more stressful for them (40%) in comparison to Baby Boomers (21%).
| Impact of missing social events due to money worries | Gen Z | Millennials | Gen X | Boomers |
| Gets me down | 31% | 37% | 34% | 39% |
| Makes me feel stressed | 40% | 29% | 22% | 21% |
| Affects my health negatively | 28% | 25% | 24% | 10% |
| Makes me feel helpless | 23% | 19% | 18% | 21% |
| Makes me feel ashamed | 25% | 21% | 18% | 16% |
| Affects my friendships | 17% | 15% | 10% | 7% |
| Makes me angry | 13% | 11% | 8% | 5% |
| Other | 3% | 2% | 2% | 4% |
‘Nothing is certain in London but expense’
Londoners were revealed to feel the most social pressure in friendship groups due to finances, more than those in any other region. Londoners were most likely to say they feel on the fringes of their friendship group because of their financial situation, with half (52%) of people living in the capital feeling that way, compared to a mere 28% in Scotland and just 30% in the North East. Almost half (48%) of Londoners find themselves excluded from social plans because of their financial situation, compared to just a quarter of people (24%) in Scotland.
Londoners were found to have the highest monthly personal spend on ‘fitting in’ amongst their social circle at an average of £166 compared to only £21 in Scotland and £24 in Wales.
Andy Russell, CEO, Wealthify said: “It is clear that social spending is a charged issue, causing much angst, particularly amongst the younger generations. Our lives can feel overwhelmingly full around this time, and it is easy to feel you are losing track of your spending and struggling to save, particularly in a high-cost economy.”
“Where possible, we want to help people develop good savings habits to help lessen the stress that periods of heightened spending can bring when they come around. Establishing good habits in the short term has long term positive impact on financial health and resilience, meaning that your finances don’t have to be a source of stress and social anxiety.”
