Bread Financial, a tech-forward financial services company that provides simple, personalised payment, lending and saving solutions, has released findings from a national study that explores the impact money has on friendships. Among the most interesting findings, 21% of survey respondents have lost a friendship over money, and 26% feel they are financially incompatible with their friends.
Findings show lending money to friends can come at a high cost. More than half (57%) of respondents reported borrowing money from friends at some point, with bills being the most common reason at 63%. Nearly a third (30%) of these borrowers also admitted they have never repaid their friends. This often leads to friction in friendships, with 33% of responders indicating that repeated borrowing without repayment was a top driver of relationship tension.
Women are less likely to let finances damage their friendships than men. More than half (52%) of female respondents say financial differences have never caused tension or conflict in their friendships, yet only 39% of male respondents could say the same. Additionally, slightly more men (24%) have lost friendships over money, compared to 17% of women.
“Money is not the be-all, end-all of any friendship – but it can play a significant role between even the best of friends,” said Lindsay Bryan-Podvin, a behavioural finance expert and consultant to Bread Financial. “This doesn’t mean people from different financial backgrounds or how they choose to spend their money can’t have meaningful connections. However, to develop and sustain strong friendships where money is a recurring factor, it’s crucial to have open money conversations, including setting clear financial boundaries and discussing money goals. A healthy friendship includes navigating money conversations, and there are ways to do it that can help you feel closer, too.”