‘Luxury’ thing 1 in 4 Aussies are ditching
Written by admin on October 22, 2024
The cost of living crisis is causing millions of Australians to give up a lot more than they bargained for, from a midweek sweet treat or a spontaneous date to the movies.
Now, it’s also making people break up with their friends.
A new study from Finder indicated almost 4.4 million people are whittling down their friendship group size in an effort to control their spending, with one in five Australians cutting back on their social gatherings or axing people from their lives completely.
To accommodate their tightening wallets, 16 per cent of Australians have started cutting back on social events, and six per cent ditching their mates altogether.
It’s a worrying sign of the times, said Rebecca Pike, money expert at Finder. “As bills, mortgages, and groceries soar, many are finding it increasingly difficult to justify discretionary spending like nights out or expensive hobbies,” she said.
“Unfortunately, for some, social activities have become a luxury they can no longer afford.”
As money becomes tighter, so do people’s schedules.
According to the study, more than one quarter (26 per cent) of Australians have started attending fewer events, whether it’s a hen’s party, a wedding or dinner out with friends, while others are ditching them altogether.
While this trend has been observed across all ages, young Australians are more likely to axe their friendship circles, with 10 per cent of Gen Z and millennials putting their friendships on the chopping block, compared to only two per cent of baby boomers.
Small social gatherings are feeling the pinch, too, with brunches, parties and shopping trips becoming increasingly more expensive, therefore less common.
“It can be challenging when your friends seem less affected by the rising cost of living,” Ms Pike said. She suggested Australians who are struggling to keep up financially to open up to their friends and be honest about their financial situation.
“Don’t go into debt to afford social occasions,” she said. “Real friends will support your choices and respect your boundaries.”
