Spending time with friends can get surprisingly expensive. A weekend away can run $300 or more, concert tickets often top $100, and a few dinners out each month can quickly add up.
Most of us want to show up for the people we care about. But as costs climb, showing up can strain a budget that’s already stretched thin. The question is: how do you stay close to the people who matter without derailing your financial goals?
To find out, we spoke with Jesslyn, a 22-year-old Simon Fraser University student and Vancity student intern, about how she navigates these financial trade-offs, and Josephine Machira, Wealth Advisor at Vancity and Aviso Wealth, about how she helps members do the same.
The rise of “friendship inflation”.
If it feels like your social life is getting more expensive, you’re probably not imagining it. Prices for services rose 3.1% on average in 2025, while restaurant meals cost 2.6% more than the year before. Statistics Canada also reported that nearly four in 10 Canadians experienced difficulty meeting their financial needs in 2025, with adults between 25 and 44 among the groups most affected.
For Jesslyn, a university student, casual plans add up quickly. “One drink with a friend, grabbing a matcha before class, buying a new outfit every time there’s a social event… I kept wondering where my money was going, and it was literally just disappearing through small, everyday spending.”
“Sometimes I’ll check my balance and think like, ‘Wait… how did I spend that much?'”, she says. “I think about my finances almost all the time. It’s like a constant background thought, making sure I’m not overspending, checking if I’m still on track, or reminding myself of my savings goals.”
Why saying no feels so hard.
ocial spending can be particularly difficult to reduce because it involves other people. Turning down a dinner, a group trip or a celebration can feel like more than saying no to an expense. It can mean worrying about missing out, disappointing people you care about, or feeling left behind while everyone else is having fun.
According to Statistics Canada, Canadians are spending less time with friends than they were three decades ago, even though people who regularly connect with friends report lower levels of loneliness and higher friendship satisfaction.
The challenge is that connection and spending are so tightly intertwined.
For Jesslyn, it’s often the smaller social plans that are hardest to budget for. “There are casual hangouts: happy hour after work, grabbing a drink with a friend, or going to a birthday party and needing to buy a gift,” she says. “Those things are easily $30 to $50 each time, and I don’t always account for them in my weekly budget.”
Josephine says, “People want to maintain the relationships that matter to them.” “The question becomes: how do you do that in a way that also supports your financial well-being?”
Rather than asking clients how they can cut back on social spending altogether, Josephine encourages them to think about what their relationships are actually built around. “Is it eating out? Is it travelling? We can come up with a budget that prioritizes those friendships in a way that makes sense for you,” she says. “Your personal financial well-being is important, too.”
How to stay connected without overspending.
The good news is that maintaining your friendships and your financial goals don’t have to be mutually exclusive. The first step is figuring out how much you can comfortably set aside for social spending.
Start with your income. A student working part-time might bring in less than $2,000 a month. Before any of that becomes money for dinners, concerts, or weekend plans, there are usually bills to pay and savings goals to consider.
Take those aside first, then look at what’s left. Maybe you have $50 a month that you can comfortably spend with friends. Maybe it’s $150. The number matters less than knowing exactly what you have to work with.
From there, think about what you actually want to say yes to. If your closest friendships are built around weekly dinners, you might put more of that money toward eating out. If travel matters most, you might spend less on casual plans and set money aside for your next trip.
A few ways to put that into practice:
| If you value… | Consider prioritizing… | Consider spending less on… | Try this money tip… |
| Close friendships | Small gatherings, dinners with close friends, and regular catch-ups. | Obligatory events that feel more like commitments. | Open a dedicated savings account for social spending and contribute monthly. |
| Travel | Annual trips with friends or family. | Frequent dining out or smaller impulse purchases. | Set up a recurring transfer into a dedicated travel fund so you’re saving a little each payday. |
| Community | Local events, sports leagues, and volunteer opportunities. | Expensive experiences you only attend out of habit. | Use spending alerts to keep an eye on your balance before saying yes to new plans. |
| Celebrations | Milestone birthdays, weddings, and family events. | Every social invitation that comes your way. | Buy gifts throughout the year instead of waiting until the week before. |
| Financial flexibility | Building a social fund for experiences that matter to you. | Last-minute spending that doesn’t align with your priorities. | Check in on your finances weekly and monthly in your digital banking app and adjust spending as your priorities change. |
While you don’t need to have a perfect budget every month, look for ways to make thoughtful trade-offs when priorities change.
“When unexpected costs happen, I usually compensate somewhere else,” says Jesslyn. “Maybe I’ll eat out only once that week or skip buying something I don’t really need. Because I’ve built up a good emergency fund, sometimes I’ll take a tiny bit from there if I really need to. But I try not to make that a habit.”
It’s also worth remembering that the connection doesn’t have to be expensive. Some of the most memorable get-togethers cost very little.
Instead of another expensive night out, you could:
- Host a potluck dinner.
- Go for a walk, hike, or beach day.
- Have a board game or puzzle night.
- Pick a cookbook and let everyone make a different recipe.
- Host a PowerPoint night on a fun topic.
- Organize a book, clothing, or plant swap.
- Meet for coffee at someone’s home instead of a café.
- Visit a free museum, gallery, or community event.
- Watch a movie or binge a favourite series together.
Sometimes, even low-cost alternatives aren’t possible. In those moments, Josephine encourages clients to be honest about their financial boundaries. “If you can’t afford the trip, be honest,” she says. “It can open up conversations about money, and you may find your friends are dealing with similar pressures.”
Finding the right financial balance.
Friendship doesn’t have to come at the expense of your financial goals. Planning ahead gives you the freedom to make room for the people who matter most and feel confident saying no when something doesn’t fit your budget.
If you’re finding it difficult to balance social spending with your broader financial goals, speaking with a financial advisor can help. A Vancity advisor can help you create a spending plan that fits your priorities, whether you’re focused on paying down debt, building an emergency fund, or finding more room in your budget for time with friends and family.
Ready to build a financial plan that works for your life? Connect with a Vancity advisor.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article is from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This information is for informational and educational purposes and is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. This material is not intended to be investment, tax or other advice and should not be relied on without seeking the guidance of a professional to ensure your circumstances are properly considered. Using borrowed money to finance the purchase of securities involves greater risk than purchasing using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Please see our Terms of Use. or complete.
