Half of Gen Z Owe $1,000+ From Group Expenses, Zelle Says

The report called the pattern “payment avoidance” – a tendency to delay or withdraw from money conversations. Twenty percent of Gen Z who owe money said they have muted or ignored a group chat to avoid paying someone back. Seven percent said they stopped hanging out with the person they owe.

Owing money causes stress or anxiety for 82% of Gen Z, versus 71% of all respondents and 64% of boomers. Being owed money also weighs on people: 59% of Gen Z said that stresses them out, compared to 46% of boomers. Nearly half of Gen Z agreed that delaying repayment is a form of avoidance, and a third said settling up causes them stress or anxiety, roughly triple the boomer rate.

The financial strain affects relationships. Sixty-nine percent of Gen Z said repayment issues have affected a friendship, family relationship or romantic one. Fourteen percent said a dispute ended a friendship outright. Millennials reported an even higher rate on that last measure: 19% said repayment problems cost them a friendship.

Digital tools may help narrow the gap. Seventy-six percent of frequent Zelle users said they pay people back faster since adopting the app, including 86% of Gen Z. Williams noted that digital payments speed repayment – or make avoidance harder. “If it’s cash, how many people are walking around with cash, and then you and your friend are like, ‘Oh, I’ll get you back,’ and it just delays and delays,” she said.

She urged patience, saying people view money differently. “The way that I view money is not necessarily the way that you view money,” Williams said. “It’s important in our friend groups to try to understand the nuances that exist within the group.”