What to do if your friend is richer than you

Money is no longer a off-limits topic for younger generations. About 37% of Gen Zers aren’t afraid to ask their friends how much they make, and about 25% of millennials say the same, according to a GOBankingRates survey.

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Despite this growing reassurance about pay transparency, money, especially wage disparities, can still create uncomfortable social conditions. If you earn less than your co-workers, how do you respond when they want to take expensive trips, eat at expensive restaurants, or give expensive gifts? Here’s what to do if your buddy is wealthier than you, according to

be honest about what you can afford

When your co-workers make more than you do, communication is essential to staying on budget. His Jordan Bierbrauer, a certified clinical social worker at his Thriveworks in Colorado, encourages people to clean the air by telling his friends and partners when they can’t afford to buy anything. I’m here.

“Being honest in this way may cause the other person in the relationship to plan only what they know you can afford,” said Bierbrauer. Communicating openly is never a bad thing.”

Taylor Kovar, CFP and CEO of The Money Couple, says trying to hide the fact that you have a limited budget will only lead to relationship strain and waste.

“Your friends who make more than you probably know that, so there’s no reason to try to hide it,” he said. Say it, and when someone isn’t communicating effectively, problems start to arise.”

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Don’t assume you need to give an expensive gift

When you receive a gift, it’s natural to want to give it back. But what if the gift you receive is beyond your budget? Remember that the giver may not have expected the gift. If so, you still have other cheaper options.

“If you really want to give something, don’t focus on physical gifts, focus on giving pleasant experiences, such as trips to the zoo, hiking in unique places, or cooking a nice meal,” says Bierbrauer. says, “The memory of a pleasant experience is likely to be long-lasting anyway.”

Blue Chip Partners Senior Financial Advisor and CFP Naoko McKelvey said the situation made her uncomfortable and, if it persisted, she recommended respectfully asking her peers to limit their gifts to a certain amount. don’t be afraid.

“You can also ask people to donate to charity instead of gifts to help those in need,” she said. There is often a

Don’t feel pressured to attend every event

From travel costs to ticket prices, certain events can quickly become expensive. But remember: Just because you’re invited to an event doesn’t mean you have to attend, he says McKelvey.

“When I was younger, we were invited to a wedding at a great destination,” she recalled. We honestly told our friends that we couldn’t afford it as we were paying and trying to stay financially responsible. but he understood.”

evaluate your relationship

But what if someone keeps pressuring you to spend more than you can afford, or makes fun of your low-paying job? It might be time to reconsider whether this relationship is worth pursuing. I can’t.

“If someone is making fun of you about your income or your job, I think it’s safe to re-evaluate whether it’s the person you want in your life,” said Bierbrauer. I recommend keeping your distance from people, as their values ​​are likely not aligned with yours.”

Share your financial goals with significant others

It can be difficult, but not impossible, to pursue a romantic relationship with someone who spends more money than you. Please stay on the same page.

“Having conversations about money during a relationship can lead to a more prosperous and happier marriage,” he said.

Coming up with Inexpensive Date Ideas

Date nights don’t have to blow your budget. If your significant other wants to enjoy an expensive activity, try offering free or low-cost alternatives for date night. This includes visits to, home dinners and game nights.

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This article originally appeared on GOBankingRates.com: What to do when your friend is richer than you