One iced coffee, Caprese salad, manicure, flower bouquet, and designer cookie later, and the reality of inflation and social trends reads red on the budget. Treating oneself, once an exception, is now a costly expectation for Millennials and Gen Z when gathering with friends. Though these generations may be known for their high-end “influencer” taste, the economy is forcing Millennials and Gen Z to reevaluate their priorities. 

Extreme price hikes are taking a toll on the personal lives of individuals. One in 10 respondents to a survey about inflation and socialization confessed to ending a friendship because it was too financially costly to maintain. 

In the United States, credit card bills, utilities, mortgages, and consumer debt continue to rise. By the summer of 2022, inflation had risen to over 9% in the U.S., a four-decade high. Though the inflation rate has since dropped, price levels remain above their pre-2021 levels. The Biden-Harris administration’s massive, multi-trillion dollar federal spending bills (like the American Rescue Plan) significantly contributed to price hikes across the nation. 

Millennials and Gen Z’s upscale taste, paired with a 3.8% price increase on menu items since 2023, has led some to limit time spent socializing. In contrast to Gen X and Boomers who spend an average of $256 and $257 per month on friendships, Millennials and Gen Z lay out $482 and $433 per month on friends. In total, Millennials will spend $7,134 each year on friendships. 

However, the tides are changing due to concerns like housing expenses. According to Zillow and StreetEasy, rent is increasing faster than wages in the majority of large cities. Overall, prices are 20.5% higher since January 2021. As the cost of living surges, the majority of Millenials, Gen Z, Gen X, and Boomers are cutting back from social engagements to prioritize saving. These trends reveal the unforeseen consequences of inflation on society. 

In the coming months, President-elect Donald Trump will have the opportunity to deliver on his promises to cut prices through deregulation and energy dominance. Perhaps these efforts alongside his promised tax cuts will turn the tide of economy-induced isolation.