The Finances of FOMO: How Social Pressure Is Draining Your Wallet

The Most Costly Social Events

As your social calendar fills up, your wallet gets lighter. In fact, 90% of respondents said that the number of social events that cost money to attend has increased in recent years, even as budgets tighten and everyday costs climb. The irony of social spending during an economic downturn certainly isn’t lost on anyone RSVP’ing "yes."

So which events are the biggest budget-busters? Here's how respondents ranked the social situations that most frequently force them to spend:

1. A friend's birthday
2. Presents for a coworker's milestone (baby and wedding showers or retirement)
3. After-work dinners or happy hours with colleagues
4. Attending a wedding
5. Buying items from a friend or coworker's fundraiser or organization

…and let’s not forget about the 16% who have bought a gift for a friend's pet!

It’s important to be able to socialize without overspending. Here’s how:

• Talk about dinner. If you’re attending a dinner party, have a say in where you’re going. Cheesecake Factory offers Happy Hour specials on Monday through Friday from 4-6 pm, which can offer a great value. Instead of splitting the bill evenly, only pay for what you had using tools like Venmo and Zelle.

• Use registry discounts. There are great registry options at Target, and the Target Circle app frequently offers $10-$15 in rewards when you spend $50 or more on baby and household items. Better yet, the store offers a 15% completion discount after the event has taken place. So, if you’re purchasing a gift after a shower or housewarming party, you can save an additional 15%.

• Discounted gift cards. Gift cards make a great gift, and sites like CardCash offer gift cards for a discounted price. For example, you can get a $50 Olive Garden gift card priced at just $42.50. That means you’ll save 15%.

Saying No Isn’t Always Easy

How are people coping with increased social spending? Quietly, and with some creative maneuvering.

75% of respondents say they've suggested cheaper alternatives to friends, family, or coworkers, like a potluck instead of dining out at a restaurant, while 76% of respondents have simply said “no,” turning down an invitation to a social event at least once over the past year because of the cost. When it comes to social pressure to spend, there’s no easy answer.

A telling 57% said that their decision to decline a social invitation has either led to a disagreement in their own relationships or that they've witnessed arguments between others over the price of social participation, with men 14% more likely to have either had a disagreement over social spending, or witnessed one, than women.

Friendship: By Any Means Necessary

For many, missing out simply isn't an option. According to our survey, 72% of respondents have considered cutting back on other expenses to afford a social event, with men 9% more likely than women to cut back on other spending to prioritize socializing. The most common trade-off? Skipping takeout. Next up: trimming the grocery budget. And 31% turned to coupons to find a little extra breathing room.

But sometimes simply cutting back on your budget isn’t enough. 17% of respondents say they've postponed saving for retirement to afford social events, trading future financial security for a night out. Going further, 63% of respondents have gone into debt to participate in a social event, with men 12% more likely to do so than women.

You don’t have to risk your financial stability just to participate in social events. Instead of using credit cards to pay for an outing, automate a $25 weekly transfer into your savings account, and use that money for social spending. If you have an APY at 4.25%, putting away $100 a month means you will have $1,224 in your social spending account. That can cover 1-2 flights for a destination wedding.

Social Media Supercharges FOMO

FOMO existed long before Facebook, Instagram, and Snapchat came along, but survey respondents agree that social media platforms have supercharged the fear of missing out in recent years.

The good news? 68% of respondents say that friends, family, and coworkers who don't use social media are less likely to pressure them into spending money on social events. While skipping social media and social events is easier said than done, it appears that doing so certainly has its benefits.

If you’re someone who can’t stay away from social media, use it to your advantage. You can follow stores and brands like Sephora or Ulta on sites like Instagram to keep track of deals, product giveaways and upcoming sales, including the Sephora Savings Event that offers up to 20% off for shoppers.