Friendflation
Has this ever happened to you?
You get a call at the last minute. Your friends are getting together for drinks, maybe a bite to eat.
Sounds great! You’re in. Where are we meeting, you ask?
It’s that fancy new restaurant everyone’s been talking about. Not necessarily what you would have picked for a drink and appetizer, but that’s ok.
Once you are all seated, the waiter asks if you’d like to order a drink. Before you can answer, someone chirps, “who’s up for a bottle of wine?” Everyone agrees it’s a good idea, and she immediately orders the $120 Sauvignon Blanc. “Trust me, you’ll love it!” Apparently everyone does, because a second bottle somehow appears right as the main courses are served. Which occurs after a round of several appetizers, which is what you thought was going to be your dinner in the first place.
Oh well, everyone is having so much fun catching up…
The fun continues, the food is delicious, a few desserts are sampled, coffees, and then…
The bill arrives.
Yikes, an evening that you imagined being maybe an espresso martini and a bite of sushi ends up 10 times that. It is painful reaching for your credit card, and you think that maybe you will not go out again for a few weeks…
You have been hit by friendflation – the effect of friendships that are becoming very expensive to maintain.
A recent article in USA TODAY quoted a survey by BadCredit.org that estimated the annual price of friendship jumps to an average of $5,184 annually when adding in the cost of special occasions like birthdays, weddings, or trips.
That seems pretty high to me, but I’m quite sure the cost of socializing has gone up significantly over the last few years!
But my friends mean the world to me, and I’m sure you feel the same way about your friends. We want to get together, but not always for the cost of a mortgage payment. So here are my thoughts on combatting friendflation.
Be upfront with your friends. Let them know if you are saving for a significant expense, or even if you are just trying to be disciplined and stick with a budget. Explain that you enjoy spending time with them but need to be a bit more disciplined with your money. They will respect this. They probably feel the same way!
Other ideas:
- Go for a walk with friends
- Have potluck dinners
- Enjoy game nights
- Invite friends for drinks and appetizers before going to that expensive dinner
- Look for free events – concerts, museums, community events
We know our friends are important. Be a trend setter and use your creativity to avoid the friendflation trap.
Shari Greco Reiches
Shari Greco Reiches is Co-Founder, Principal and Chief Growth Officer of Rappaport Reiches Capital Management. She is the architect of the firm's Maximize Your Return on Life Solution, which aligns clients' financial planning with their Core Values. She is a frequent speaker on financial planning and values, author of Maximize Your Return on Life - Invest Your Time and Money in What You Value Most and enjoys mentoring women in the wealth management profession. Please connect with Shari below. She loves to talk about investing, financial planning, and Barry Manilow.