By SPEAKIN’ OUT NEWS
Dream vacations, music festivals, and sporting events may create unforgettable memories for Generation Z, but many young travelers are returning home with something they never planned for—debt.
A new study commissioned by digital payments platform Zelle found that Gen Z spends more on group travel than any other generation, averaging $2,501 per person for trips and major events. But many are also left paying the bill when friends fail to reimburse them.
Among Gen Z travelers who covered shared expenses, 76% said they were never fully repaid. More than half (55%) said the unpaid money caused tension or permanently damaged a friendship, while 47% reported going into debt after fronting travel costs.
The financial strain has also affected relationships. One in five respondents admitted to muting group chats or avoiding friends to escape uncomfortable conversations about repayment.
“No one wants the best part of a trip to be followed by the worst part: chasing friends to pay you back,” said Denise Leonhard, general manager of Zelle. “Shared experiences should bring people closer, not create debt, tension or awkward group chat reminders.”
Financial experts recommend discussing budgets before booking a trip, deciding who will cover expenses, and setting clear repayment expectations.
“What starts as a payment request can quickly turn into avoidance,” said Dr. Traci Williams, a board-certified clinical psychologist and certified financial therapist. She said taking responsibility for repayment can reduce stress, protect friendships, and help young adults avoid turning memorable vacations into long-term financial burdens.