5 Ways to Resist Financial Peer Pressure and Still Keep Your Friends

College is hard work, but it can also be a lot of fun. And that fun comes at a cost: nights out, restaurants, ride shares.

It adds up.

For students looking at a packed social calendar, saying “No” might be a smart financial move, but relationships are important, and financial peer pressure is real.

So how can students hold onto their cash without sacrificing friends? Here are a few tips.

No. 1: Suggest budget-friendly alternatives

Should the moment come to have a conversation about money, be honest. Everyone’s financial situation is different, so suggest activities or meeting points that you have already predetermined are free or budget-friendly. This is a better solution than waiting for a friend to suggest an activity that is expensive and having to say that you can’t afford it.

No. 2: Discuss your financial background

To avoid peer pressure and keep your friends, you need to be clear on your budget, income, and expenses. If you don't know what you can afford, it's more difficult to make decisions on the spot.

Be aware that not everyone comes from the same financial background as you. College is sometimes the first place that students develop friendships with people of very different means, and they may not know how to navigate them.

If you're always short on cash and your friends don't seem to understand why, it legitimately may not occur to them that you need to work if you want money. Explain your situation with kindness.

Expressing something about your financial background is the easiest way to start a financial conversation.

You could begin by commenting on how all your friends from high school had jobs, talking about a friend who couldn't afford to attend college, or making a comment about your student loans to set the tone and send the message that you don't come from a place of unlimited money.

If you can't afford something, you can simply say it's not in the budget. If they are insensitive after that, maybe that person isn’t a true friend.

No. 3: Be transparent about your budget

Making your money situation clear and transparent to your friends is a great way to resist financial peer pressure and maximize saving and budgeting across many aspects of your personal life.

If you let your friends know of your budgeting plans, they are less likely to try and pressure you to do things that fall out of your projected budget. Not only does it set the bar for your personal goals, but it also draws clear boundaries your friends should respect.

No. 4: Stay true to yourself

Being true to yourself is one of the best gifts of self love and nurturing you can give yourself. Surround yourself with those who are supportive and genuine.

If you need to spend two years at a community college before transferring to a university, then so be it. To minimize school debt, borrow as little as possible. If you do need to borrow, find out how much you will owe and how long it will take to pay off. Pay off your school loan debt as soon as possible so that you can build wealth for your future faster.

Research your desired future profession. Make sure that your degree will yield a return on investment (ROI).

Write down your goals. Have your roadmap in a place where you see it constantly so you can work towards your five- and 10-year plans.

No. 5: Pick friends who share your values

Real friends shouldn’t judge you on what you wear, how you look, and where or how you spend your money. Avoid spending money just to impress your friends; you are in college and you want to develop great financial habits.

The bottom line

Do your best not to succumb to financial peer pressure. Use these tips to build healthy financial habits and friendships.