Costs of maintaining friendships proving burdensome for young adults, study reveals, with 44% foregoing significant social gatherings because of financial constraints
In a recent study commissioned by Ally Bank, named "The Friendship Tab," it was found that the social lives of young people are undergoing significant changes.
Nearly half of the surveyed Gen Z and Millennials reported having one to three close friends they frequently socialise with. However, one in five admitted to feeling they couldn't be honest with friends about their financial situations.
Despite these challenges, the study revealed that 32% of these young individuals go out to bars or restaurants with friends at least once a week. Yet, 44% have skipped major social events due to cost, and almost a quarter are afraid of missing out on friendships and community due to financial limitations.
Amidst these economic hurdles, Gen Z and Millennials are proving the naysayers wrong about the loss of faith in the American Dream. They are adapting traditional expectations to new realities and redefining success on their own terms.
One key way they are doing this is by focusing on entrepreneurship and side hustles. A significant portion of Gen Z sees starting their own companies or side hustles as essential paths to financial stability and fulfillment, rather than relying solely on traditional 9-to-5 jobs.
They are also redefining what success and financial milestones mean. Many no longer see owning a home or a conventional career trajectory as the primary indicators of success. Instead, paying off debt, supporting family, and achieving financial stability are prioritized.
Being financially self-aware and proactive is another crucial aspect. Despite inflation, student debt, and housing unaffordability, Gen Z is more financially knowledgeable and action-oriented than previous generations at the same age. They often turn to social media communities for financial advice due to lack of formal guidance.
Leveraging innovation and productivity, Gen Z's productivity and innovation are crucial to sustaining economic growth. As the largest generation, they are expected to inherit a vast wealth transfer, making their economic success vital on a structural level.
Lastly, they are advocating for systemic change. They recognise the structural barriers—such as soaring housing costs, wage stagnation, and economic instability—and the need for bold policy and social changes to create accessible opportunities.
By embracing a broader and more flexible definition of the American Dream—focusing less on rigid milestones and more on adaptability, entrepreneurship, and community—Gen Z is crafting new paths to prove the dream is still attainable and relevant for their generation.
Financial influencer Haley Sacks has warned young Americans about the potential risks of using 'Buy Now, Pay Later' options, but the study did not provide any information about the impact of these options on the financial well-being of young people.
The study also did not provide specific details about the number of participants or the methodology used. However, it offers a valuable insight into the social and financial lives of Gen Z and Millennials, and the strategies they are employing to navigate the modern world.
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