Feeling isolated? The rising cost of living might be a contributing factor, as revealed by a recent survey.

According to BadCredit.org’s survey of 995 Americans, 37% reported that they are distancing themselves from friends because it’s become too costly to maintain those connections.

Among different age groups, Gen Z leads with 44% prioritizing saving over socializing, followed closely by millennials at 38% and Gen X at 36%. Baby boomers seem least affected, with only 23% admitting to neglecting friendships for financial reasons, according to the survey.

Beyond just neglect, the survey found that one in ten respondents have even ended a friendship due to its high cost. Additionally, 21% feel they are spending more on their friends than their friends are on them, which can lead to feelings of resentment or imbalance.

“It saddens me to see so many individuals sacrificing their social lives due to the high cost of living,” stated Erica Sandberg, a consumer finance expert at BadCredit.org. “These social connections are crucial.”

What is the financial impact of friendships?

Millennials spend the most on friendship-related costs, averaging $482 monthly, with Gen Z not far behind at $433. In contrast, Gen X and baby boomers spend about half that amount, at $257 and $256 respectively.

For millennials, a significant portion of their expenses ($275) goes towards meals and drinks, whereas Gen Z leans more towards entertainment expenses like concerts and movies, averaging $102. Both Gen X and baby boomers prioritize dining out with friends, spending $93 and $84 per month respectively.

When factoring in the costs of special events such as birthdays and weddings, the yearly expense of friendships can soar to an average of $5,184. Millennials spend about $7,138 annually on friendships, while Gen Z spends around $6,181. In comparison, Gen X and baby boomers spend considerably less, at $3,905 and $3,832 respectively.

People living in urban areas typically spend nearly three times more on friendships than those in suburban or rural regions. On average, city residents spend $747 per month on friendships, contrasting sharply with $238 for those in suburban areas and $221 for rural residents.

What are alternatives to spending money on friends?

Many people still desire more time with friends, as over 75% expressed a wish to meet their friends more often. However, 21% say they only see their friends once a month, according to the survey.

Unfortunately, financial constraints are the main reason for this limited social interaction.

“Staying in has become my primary way to avoid extra spending,” a Reddit user identified as Ok-Sky1329 shared. “It seems like even going outside involves at least a $100 expense these days.”

A significant 65% of respondents admitted they have cut back on social engagements to save for essential costs like housing or debt. Among these respondents, 74% were Gen Z, 64% millennials, 67% Gen X, and 49% baby boomers, the survey noted.

Is it necessary to lose friendships due to financial concerns?

Erica Sandberg suggests that money doesn’t have to sever friendships.

“Going out can indeed be pricey, especially in cities, but there are budget-friendly options available,” she stated. “Look for free or low-cost events in your area, like group walks, museum free days, or discounted happy hours. Instead of declining invitations, propose more economical choices.”

However, Reddit user Ok-Sky1329 expressed skepticism, mentioning that “free events often come with hidden costs like parking.” They added, “If your friends prefer to hang out at bars, you might end up feeling lonely. It might be a good time to learn to enjoy your own company.”