What Millennials and Gen Z Aren't Telling You About Money

We’ve all been told that talking about money should be avoided — even that it’s downright rude. And when it comes to splitting expenses, we’re talking about a lot more than numbers; we’re dealing with feelings. And Millennials and Gen Z have a lot of ‘em, especially in today’s world of group travel, dining, and shared gifts.

The emotional side of splitting expenses

Millennials and Gen Z often experience significant anxiety around group expenses. According to a study by Intuit Credit Karma, nearly one-third of Millennials (32%) feel awkward about splitting the bill when dining with friends. This anxiety can be so intense that almost half (47%) of Millennials would rather pay the full bill themselves to avoid the conversation. This is compared to 33% of Gen Z and 31% of Boomers who feel the same way.

Additionally, 46% of Millennials experience extreme anxiety when putting group charges on their credit cards. This stress stems from the fact that one in five Millennials feels uncomfortable asking friends to repay them, making it hard to recover costs.

Why it's so stressful

The anxiety around splitting expenses often ties back to deeper financial concerns and social dynamics. Income disparities among friends can create pressure for some to spend beyond their means. There can also a social expectation to be generous, as well as a fear of setting financial boundaries. Not to mention that the process of calculating who owes what can feel like mental gymnastics.

A healthier approach to group spending

  1. Open communication: Start by being transparent about your financial situation with your friends. It’s okay to be honest about what you can and can’t afford.

  2. Set clear expectations: Discuss and agree on how to handle group expenses before the bill arrives. This avoids surprises and ensures everyone is on the same page.

  3. Respect boundaries: Understand and respect each person’s financial limits. Avoid pressuring friends to spend more than they’re comfortable with.

Tactical phrases for addressing money concerns

Sure, that all sounds great. But how do you actually go about making it happen?

  1. Not being paid back: “I noticed that the payment for [specific item/occasion] hasn’t come through yet. Can you let me know when you might be able to send it?”

  2. Unable to pay back immediately: “I’m currently a bit tight on cash, but I’ll be able to pay you back by [specific date]. Is that okay?”

  3. Suggesting a different activity: “I’d love to hang out, but I’m trying to save money right now. How about we [suggest a budget-friendly alternative] instead?”

  4. Discussing splitting costs: “Before we make plans, can we talk about how we’re going to split the costs? I want to make sure it’s fair for everyone.”

  5. Setting boundaries: “I’m happy to join in, but my budget is [specific amount] for this outing. Is that manageable for everyone?”

By fostering open communication, setting clear expectations, and respecting financial boundaries, you can navigate these tricky conversations more easily. Remember to sign up for the Orbit waitlist to stay updated on our app that will simplify managing group expenses!

Source: Intuit Credit Karma, Check, please? Millennials suffer extreme anxiety when picking up the tab for friends

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