How to stop the 'friendship wage gap' from ruining holiday plans
Planning a holiday with friends can be really exciting. From deciding where you’ll go to what activities you want to do, it’s always fun travelling with close mates. However, things can get awkward if you’re not all on the same page about spending during the holiday.
This is particularly true if you are on a lower income than your peers. While holiday planning should be fun for everyone involved, you may face some uncomfortable conversations about what you or your other friends can afford.
New research from debt advice provider UK Debt Expert reveals that more than half (54%) of arguments with friends on holiday are triggered by disagreements over money. The analysis highlights the issue of income disparities, which hinder people’s ability to make travel plans with friends and can lead to stress and potential exclusion within friendship groups over time.
Maxine McCreadie, personal finance expert at UK Debt Expert, says: "While income is a huge factor, it’s not the only thing financially restraining travel plans. Other expenses and financial situations can vary greatly due to rising living costs, such as rent, mortgage payments, childcare and car maintenance.
"People on lower incomes often risk potential social isolation if they cannot afford certain activities. Addressing these differences involves respecting financial boundaries, suggesting alternative activities that fit various budgets and fostering an inclusive atmosphere."
She adds: "Remember, everyone is on their own financial journey; some may earn more while others manage tight budgets, and that’s perfectly normal. It’s important to support each other through challenging circumstances."
The company has launched a calculator that estimates the number of work hours needed to afford particular events based on individual salaries. This tool aims to encourage understanding and empathy among friends by highlighting the financial impact of social plans.
To give an idea of how income disparity can affect holiday plans, a week-long holiday costs an average of £420. People on an average UK salary typically have to work around 29 hours to afford this; however, people on higher incomes (eg. £100,000 per year) would only need to work eight hours.
McCreadie shares her top tips to help groups of friends navigate the financial complexities of planning a holiday together:
1. Discuss budgets early
Before making any plans, have an open discussion about everyone’s budget. Understanding each person’s financial situation will help in planning a trip that is enjoyable for all.
2. Plan activities within the budget
Finding accommodation and travel that fits within the budget is a crucial first step - look for any group discounts that are available.
3. Agree on a payment schedule
Decide when and how payments will be made that would be suitable for all.
4. Plan for contingencies
Discuss how to handle unexpected expenses or emergencies; having a plan in place can prevent disagreements if something unplanned comes up.
5. Use apps for shared expenses
Splitwise and Vemno can help track expenses, making it easy to record who owes what and can help avoid any confusion.
Read more about friendships:
How to reconnect with old friends, as Billie Eilish opens up about friendships (Yahoo Life UK, 5-min read)
Christine McGuinness opens up about loneliness and missing out on friendships (Yahoo Life UK, 4-min read)
British women more likely to prioritise friendships this Valentine's Day (Yahoo Life UK, 3-min read)
