Gen Z and Millennials Take on 38% Debt for Group Trips, Experts Advise Transparency

Gen Z and millennials are increasingly taking on debt to participate in group trips, a trend that has raised concerns about financial strain and emotional tension within friend groups. The costs associated with these trips, which can include airfare, accommodations, and various activities, often lead to unexpected expenses that can cause resentment and guilt among participants.

Maggie Hansen, a 31-year-old who recently organized a bachelorette party in San Diego, faced this challenge head-on. She and her maid of honor made efforts to be transparent about the costs involved, using tools like Google surveys and budgeting apps to ensure that everyone was on the same page. Hansen also used credit card points to help cover the costs for less well-off friends and worked out payment plans for those who couldn't afford the full amount upfront.

Hansen's approach highlights the importance of open communication and financial transparency in group travel. By discussing spending expectations upfront and using tools to track expenses, she was able to create an environment where everyone felt comfortable and included. This is particularly important given that nearly 40% of Gen Z and millennials report having a friend who drives them to overspend, and 38% have taken on debt to attend events like weddings and bachelorette parties.

Experts agree that discussing financial expectations before big events or weekend trips is crucial. Thomas P. Farley, an etiquette expert, advises that there should be no financial surprises. He suggests that the person planning the trip should consider covering some expenses, such as an exclusive dinner or excursion, to help cut tension. Jack Howard, head of money wellness at Ally Financial, emphasizes the importance of being open and honest about financial situations to better understand each other's relationship with money.

For those with limited funds or different financial priorities, it is essential to be brave enough to opt out of activities that don't fit into their budget. Jamila Musayeva, a certified etiquette coach, recommends approaching the conversation around collective comfort rather than singling out any one person. She suggests saying, "I’d love to join, and I want to make sure we’re all aligned on budget expectations before we book anything, should we set a spending range so everyone feels comfortable?"

Zina Kumok, a financial advisor, advises that those with limited budgets should aim to be involved in the planning process to have some control over the cost. She suggests giving friends your total budget and asking if they can stick to that. Andrea Woroch, a personal finance and budgeting expert, recommends requesting separate checks in situations where there are large discrepancies in spending. Erika Rasure, chief financial wellness advisor at Beyond Finance, suggests setting aside time to review your budget and using a prepaid debit card to stay on track.

In summary, the trend of Gen Z and millennials taking on debt for group trips highlights the need for financial transparency and open communication. By discussing spending expectations upfront, using budgeting tools, and being honest about financial limitations, individuals can avoid the emotional and financial strain that often accompanies these events. Experts emphasize the importance of planning, communication, and financial awareness to ensure that everyone can enjoy the trip without worrying about the state of their bank account.