Gen Zers aren't getting paid back for group expenses

Key Points:

• A June 30 Zelle study found that 76% of Gen Z consumers who paid upfront for group expenses were not fully reimbursed, leading to financial strain and damaged friendships among this cohort born between 1997 and 2012.
• Many Gen Zers face pressure to spend on social experiences despite financial challenges like student loans and a tough job market, with nearly half reporting going into debt to cover group costs.
• Avoidance behaviors such as canceling plans or ignoring payment requests are common, with 20% of Gen Z admitting to delaying or avoiding repayment, which harms trust and relationships.
• Experts recommend open communication about money, setting repayment plans before group activities, ensuring affordability before fronting costs, and being honest about repayment timelines to maintain friendships.
• Despite the availability of payment apps like Zelle, Venmo, and Splitwise, social awkwardness around settling group expenses persists, emphasizing the need for proactive financial conversations among friends.