The plans finally made it out of the group chat: one person covers the apartment rental, another covers dinner for two nights, someone else grabs the concert or sports tickets, while the others are happy to let someone else do the planning. Friends cover the expenses with the expectation they’ll get paid, but a new survey says otherwise: Gen Z is spending big on group trips and events, but they’re not getting reimbursed.
A new report from Zelle finds that 46% of Gen Z currently owe friends or family more than $1,000, and 30% owe $2,500 or more. Nearly half, 47%, say they’ve gone into debt covering a group expense they expected to be repaid for, compared with 13% of Boomers.
Dr. Traci Williams, a clinical psychologist and financial therapist, said in an interview that the reluctance to settle up often starts before the trip even happens. “It’s really uncomfortable to have money conversations with people that you’re close to, and so they may not hash out what the payment arrangement should be before they front the cost,” she told Fortune. The person who organizes the trip is usually the one left holding the bill, she said, because nobody agreed on repayment terms beforehand.
“There’s a lot of assumption that happens, and so making the expectations clear and talking through it can really help.”
The Zelle report is based on two online surveys: one of 1,000 U.S. consumers age 18 and older, and the other of 1,000 “super-users,” or people who use Zelle at least four times a month. Breaking it down by generation, the survey found Gen Z spends more than any other generation at major group events—37% report spending over $2,500 per person on things like concerts, sporting events and group trips, the highest share of any age group.
But repayment timelines lag. According to the survey, only 28% of people who borrow for shared expenses say they repay immediately. And among Gen Z, 18% say it can take up to a month, 10% say two to six months, and 11% say more than six months.
Avoiding heavy conversations
Williams said part of the problem is simply how distracted people are. “It’s a whole lot easier to spend than it is to think through the process, including repaying other people,” she said. “People are pulled in multiple directions… we can forget, we can delay, we can put things off, we can have difficult conversations that we are avoiding.”
The report calls this pattern “payment avoidance,” in reference to a tendency to delay, ignore or withdraw from money conversations rather than have them. Twenty percent of Gen Z who owe money say they’ve muted or ignored a group chat to avoid paying someone back, and a smaller share, 7%, say they’ve stopped hanging out with the person they owe altogether.
But that avoidance is leaving a tangible impact on most respondents, regardless of age: 82% of Gen Z said owing money causes them stress or anxiety, compared with 71% of all respondents and 64% of Boomers. Being owed money weighs on people too: 59% of Gen Z said that stresses them out, compared to 46% of Boomers. Nearly half of Gen Z (48%) agreed that delaying repayment is itself a form of avoidance, and a third said settling up causes them stress or anxiety outright, roughly triple the Boomer rate on the same question.
Sometimes it leads to real life relationship problems, with 69% of Gen Z saying repayment issues have affected a friendship, family relationship or romantic one, and 14% saying a dispute has ended a friendship outright. Millennials report an even higher rate on that last measure—19% say repayment problems have cost them a friendship.
Digital tools may help with narrowing that gap, Williams said, saying it speeds up repayment—or makes avoiding it that much harder. The report backs that up: 76% of frequent Zelle users say they pay people back faster since adopting the app, including 86% of Gen Z.
“If it’s cash, how many people are walking around with cash, and then you and your friend are like, ‘Oh, I’ll get you back,’ and it just delays and delays,” she added.
Still, Williams urged patience with friends who may treat money differently. “The way that I view money is not necessarily the way that you view money,” she said. “It’s important in our friend groups to try to understand the nuances that exist within the group.”
A recent survey conducted by Zelle highlights a growing concern among Gen Z regarding group expenses and the challenges of repayment among friends and family. The report reveals that a significant number of Gen Z individuals are racking up debts while covering costs for shared activities like concerts, sporting events, and trips. Notably, 46% of Gen Z respondents report owing friends or family over $1,000, with 30% indicating debts of $2,500 or more. This trend contrasts sharply with older generations, as only 13% of Baby Boomers admitted to similar financial strains.
Dr. Traci Williams, a clinical psychologist and financial therapist, emphasizes that the reluctance to discuss money often begins prior to the trip. Many individuals feel uncomfortable having financial conversations with close friends, leading to misunderstandings about payment responsibilities. As a result, the person who organizes the trip often ends up covering the expenses without a clear arrangement for repayment.
The Zelle survey, which involved two online assessments of U.S. consumers—one with 1,000 adults aged 18 and older and another with 1,000 frequent Zelle users—found that Gen Z spends more on group events than any other age group. Approximately 37% of Gen Z respondents report spending over $2,500 per person, the highest among all generations. However, the survey also uncovers a lag in repayment timelines, with only 28% of individuals who borrow for shared expenses repaying immediately. Among Gen Z, 18% anticipate repayments within a month, while 10% expect it to take two to six months, and 11% think it may exceed six months.
Williams notes that distractions in daily life contribute to this issue, making it easier for individuals to spend money without considering repayment. She refers to this behavior as « payment avoidance, » where individuals delay or ignore discussions about money. The survey found that 20% of Gen Z respondents admitted to muting or ignoring group chats to avoid repayment discussions, and 7% have distanced themselves from those they owe money to.
The stress related to owing money is palpable among Gen Z, with 82% reporting feelings of anxiety or stress about their debts, compared to 71% of respondents from all age groups and 64% of Baby Boomers. Additionally, 59% of Gen Z expressed that the burden of being owed money stresses them out, while 48% acknowledged that delaying repayments is a form of avoidance. For one-third of Gen Z, the anxiety associated with settling debts is significant, highlighting a stark contrast to the 11% of Boomers who feel the same way.
Financial disagreements can also strain personal relationships. The survey found that 69% of Gen Z respondents indicated that repayment issues have adversely affected friendships, family dynamics, or romantic relationships, with 14% stating such disputes have severed friendships. Millennials reported an even higher incidence, with 19% stating that financial disputes have led to the end of a friendship.
The introduction of digital payment tools like Zelle may mitigate these repayment challenges by facilitating quicker transactions. According to the report, 76% of frequent Zelle users claim they pay back debts faster since using the app, including 86% of Gen Z respondents. Williams suggests that the convenience of digital payments reduces the likelihood of delays that often accompany cash transactions, where promises of future repayment can easily slip through the cracks.
Despite the advantages of digital tools, Williams advises patience and understanding within friendship groups. She emphasizes that individuals may have different perspectives on money management and repayment, which can influence their behavior. Understanding these nuances is essential for maintaining healthy relationships and navigating financial obligations among friends.
In summary, the Zelle survey reveals a concerning trend among Gen Z regarding group expenses and repayment. Many young individuals find themselves in debt due to the high costs of shared activities, with a significant portion experiencing stress and anxiety around these financial obligations. The avoidance of financial conversations, coupled with the challenges of repayment, can also lead to strained relationships. While digital payment tools offer a potential solution to expedite repayments, fostering open communication and understanding within friend groups remains crucial for managing shared expenses effectively.
