Half of Gen Z (49%) have been excluded from social plans because of their financial situation, Wealthify has found.

Research by the firm showed that as the cost of living crisis continues to loom large, over half (51%) of Gen Zs admit they feel on the fringes of their friendship group because of their financial situation, more than any other generation.

Half (50%) of Gen Zs also reported feeling pressure to attend social events to 'save face' and then suffering financially as a result.

Wealthify found that Brits are collectively spending £5.8bn a month on maintaining a social life, with £3.8bn of their monthly personal income being spent on keeping up appearances and 'fitting in'.

It was also revealed that 42% of Gen Z and millennials sometimes, frequently or always miss social events because of money worries, compared to just a quarter (24%) of baby boomers.

Three in 10 (31%) UK adults have felt under pressure to socialise to ‘save face’ and have suffered financially as a result.

Delving into why these people put themselves under pressure to socialise, both mentally and financially, the principal reason for Gen Z was 'maintaining friendships' (46%). Other factors are boredom and loneliness (28%), and social media hype (16%).

Londoners were found to feel the most social pressure in friendship groups due to finances, more than any other region.

Over half (52%) of people living in the capital said that they feel on the fringes of their friendship group because of their financial situation, compared to 28% in Scotland and 30% in the North East.

Furthermore, almost half (48%) of Londoners find themselves excluded from social plans because of their financial situation, compared to just a quarter (24%) of people in Scotland.

Chief executive officer at Wealthify, Andy Russell, said: "It is clear that social spending is a charged issue, causing much angst, particularly amongst the younger generations. Our lives can feel overwhelmingly full around this time, and it is easy to feel you are losing track of your spending and struggling to save, particularly in a high-cost economy.

"Where possible, we want to help people develop good savings habits to help lessen the stress that periods of heightened spending can bring when they come around. Establishing good habits in the short term has long term positive impact on financial health and resilience, meaning that your finances don’t have to be a source of stress and social anxiety."

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