It is no secret that the cost of going out, treating yourself, booking holidays, and other lifestyle treats are on the rise, but the financial impact of these activities is often overlooked. MoneyPlus financial experts have shared some of the ways lifestyle culture is cutting into financial goals. They have also included some ways to help people escape the trap of these expenses, without having to ditch the social life.
The Cost of Celebration Culture Is Rising
Events like weddings, hen parties, and stag parties used to be one-off, joyful occasions that might just require a day's annual leave and a new outfit. However, in recent years, they have morphed into extravagant events that are no longer a casual night out. They are now long weekends with expensive activities and coordinated outfits for each one. According to Aviva, in 2023, the average spend for a hen or stag do reached £779 in the UK and £1,200 for events abroad.
“Instead of a simple night out, these events have become more and more elaborate, partly due to the influence of social media on destination choices and activities,” says MoneyPlus expert Steve Shaw.
Sacrificing Holidays to Afford the Milestones of Others
MoneyPlus asked three different age groups – Generation X (aged 45-60), Millennials (aged 29-44), and Generation Z (aged 18-28) – about how they approach their finances, specifically in relation to holidays, lifestyle, and debt.
“Our data suggests people across all generations may be foregoing their own holidays to afford milestone celebrations for others, such as baby showers and hen or stag dos. The pressure to splash out on these events has significantly increased in recent years,” says Shaw.
Over 60% of survey respondents across all age groups have had to give up a holiday due to financial reasons. Notably, 56% of Generation X – typically viewed as financially stable having reached midlife – have made this sacrifice. This challenges the assumption that older adults have more disposable income and are better equipped to handle financial pressures.
The Pressure to Attend
Shaw says: “Over 60% of respondents to our survey said they felt pressure to spend a lot on these events. While it is no surprise that the younger generations – who are at the peak age for these celebrations – would feel this strain, the scale of it is striking. A significant 65% of Millennials and 64% of Generation Z reported feeling this pressure, highlighting how widespread and normalised these financial expectations have become.”
Despite not being at peak age for such celebrations, over half (54%) of Generation X respondents also said they felt obliged to spend significant amounts on others' milestones. Financial strain and social pressure to show up – and spend – for friends and family do not necessarily ease with age.
Social Media and the Cost of FOMO
A lot of the pressure to attend is driven – or at least increased – by social media. Things that used to be private are now public demonstrations of status and lifestyle, from hen parties that are a week in a luxury destination to designer gifts for baby showers.
Anel Andrew, an Insolvency Practitioner at MoneyPlus, commented on the dangers of social media on debt: “Social media makes it easy to compare yourself to others, but what we don't see is the credit card debt or financial stress behind the luxury lifestyles. The pressure to 'keep up' can lead to overspending, taking on unnecessary debt, and prioritising short-term gratification over long-term financial security.”
This social media-fuelled pressure and constant comparison to others feeds a specific type of FOMO; it is not just about fun, it is about identity, and feeling like you are failing or falling behind when you try to make the wisest financial decisions. This leads to more debt, stress, and sacrifices – from giving up holidays, to dipping into hard-earned savings, or opting for Buy Now, Pay Later (BNPL) schemes – to protect the lifestyle that they want to present but cannot really afford.
How to Escape
“It is clear that financial difficulty does not just affect one demographic. It touches students and single parents, young workers and midlife homeowners. If you are struggling, it is important to get the debt help and advice you need,” says Shaw.
It is difficult to escape the social financial pressure, but you can be more conscious of it in order to protect your financial future and prepare for events later down the line.
- Set boundaries – and stick to them. Remember that it is okay to say no, whether it is a destination wedding that you cannot afford to attend, or simply setting a limit on how much you can spend on gifts.
- Take a break from social media. Unfollow accounts that make you compare yourself or try a full social media detox for a few days, especially at a time of financial decision making, to stop it influencing your choices and decisions.
- Track your lifestyle inflation triggers. Are you impulsively spending more because you are comparing yourself to others? Stress? Because you feel you deserve it? Knowing your triggers can help you work on healthier habits and redirect those feelings to stop you spending money unnecessarily.
- Track your spending and set a budget. The first step to saving money is keeping track of what money is coming in and out of your account every month. This helps you to identify your spending habits and where you could potentially cut back costs. For example, if your monthly bill for streaming service subscriptions is higher than you would like, you can consider cancelling the ones you use least.
- Once you have a clear idea on where you would like to cut back, set a budget for the month, ensuring you have enough set aside for essentials such as food and household bills. This will help with managing your money and making sure you are not overspending on non-essentials.
- Set clear financial goals that excite you. It is easier to resist spending too much on things you do not need when you know you are saving up for something you are excited about, like buying a house or taking time off work to travel – rather than just putting money aside because you know you have to.
- Download a budgeting app. To help manage your money that much easier, there are a number of budgeting apps available, such as Snoop and Plum. Snoop allows you to track your spending behaviour by category and alerts you if there is a better deal available for your household bills. Plum offers 'Round-ups', which round up your transactions to the nearest pound and set aside the difference. There is also an automatic saving option where Plum's algorithm analyses your income and expenses, putting money aside where it can.
- Make your lifestyle upgrades deliberate. Ask yourself if what you want to buy will improve your daily life or just give you a quick dopamine hit and soon be forgotten. Upgrade one thing at a time, rather than everything at once, and wait a few days before making a big decision, instead of acting impulsively.
