For many young adults, the decision to stay home on a Friday night is becoming less about personal preference and more about financial reality. New research suggests the rising cost of entertainment, food and drinks is forcing many members of Generation Z to reduce their social activities, contributing to higher levels of loneliness while changing how the next generation approaches leisure and spending.
Two newly published studies, one from The Harris Poll and another from global marketing consultancy Ogilvy, indicate that economic pressures have become one of the biggest influences on how Gen Z spends weekends. Rather than avoiding in-person interaction, many young consumers say they simply cannot justify the cost of going out.
Rising costs are changing weekend habits
The Harris Poll surveyed more than 4,000 U.S. adults, including over 600 Gen Z respondents, during late May and early June. According to the findings, 68% of Gen Z participants believe a night out is no longer worth the financial impact, while 62% intentionally avoid making weekend plans because they expect to regret the expense afterward.
Researchers described the behaviour as a “spending hangover,” suggesting financial regret has overtaken fear of missing out as a key factor shaping social decisions.
Libby Rodney, Chief Strategy Officer at The Harris Poll, said the findings point to economic constraints rather than declining interest in socialising.
“We call it placing financial regret over FOMO. It isn’t the physical connection of things [that Gen Z is trying to avoid], it’s just financial.”
The survey also found that roughly three quarters of Gen Z respondents spend most weekends at home.
One illustration of the financial caution came from a hypothetical question asking participants how they would use an unexpected $100. More than seven in ten Gen Z respondents said they would save the money or use it to pay bills instead of spending it on entertainment, a higher proportion than older generations.
Rodney noted that drinks costing between $15 and $25 can quickly turn an ordinary evening into a significant expense, particularly for younger adults dealing with housing costs and uncertain employment prospects.
Loneliness reflects broader economic pressure
The Harris Poll found that 51% of Gen Z respondents experience loneliness during weekends, substantially higher than older generations. Researchers argue that financial stress and limited opportunities for affordable social interaction are contributing factors.
Ogilvy’s separate Gen Z Pulse report reached similar conclusions after surveying young adults across the United States, the United Kingdom and Australia. The study found that only 17% of young Americans feel deeply connected to at least one community, while fewer than one in five believe a sense of belonging comes naturally.
Instead, most respondents described maintaining friendships and communities as something requiring continuous effort.
Reid Litman, Director at Ogilvy Consulting and author of the report, argued that many stereotypes surrounding Gen Z overlook the structural challenges facing the generation.
He said today’s young adults entered adulthood during a period shaped by the pandemic, elevated inflation, housing affordability issues and a changing labour market, all arriving within a relatively short period.
Unlike previous generations, Litman argues Gen Z developed its expectations inside this environment rather than adapting to it later in life.
Affordable communities may become the next growth market
The research also suggests the shift away from traditional nightlife is encouraging new forms of social interaction.
According to The Harris Poll, 85% of Gen Z respondents have already found lower-cost ways to socialise during the past year, including hosting gatherings at home, attending happy-hour promotions and participating in outdoor or fitness activities. Nearly three quarters also expressed interest in social environments where alcohol is not the primary focus.
That trend aligns with wider changes across the consumer economy. Deloitte’s recent Gen Z and Millennial Survey has also highlighted growing financial anxiety among younger consumers, while businesses across hospitality, fitness and community-based recreation are increasingly introducing lower-cost experiences to attract budget-conscious audiences. As disposable income remains under pressure, venues offering affordable ways to meet friends may be better positioned than businesses relying solely on premium nightlife spending.
What businesses should watch
Although Gen Z currently faces tighter budgets than previous generations at a similar age, both reports suggest this is unlikely to reduce its long-term influence on consumer markets.
Ogilvy projects the generation will become the largest driver of consumer spending growth over the coming decade, meaning today’s spending restraint could eventually shape tomorrow’s entertainment, hospitality and retail sectors.
For businesses, the message is clear. Price sensitivity is not eliminating demand for social experiences. Instead, it is changing where, how and why younger consumers choose to spend their money.
