Greta May transfers $15 into a savings account she shares with two of her close friends weekly and reckons it is the “best thing.”
While opening a joint account is common in romantic relationships, trusting your friends with your finances is a relatively new concept. For Millennials and Gen Zers though, it’s becoming a financial trend.
The 29-year-old is an influencer who grew up online, where money was discussed and not considered taboo. Therefore, sharing money with her mates felt more like a no-brainer than a major step.
It has been a big success for Greta, who contributes weekly to an account she shares with friends.
“It is one of the best things we’ve ever done,” she said.
Greta has always been someone who saves. While the dream of buying a house can feel “forever away”, saving up for trips with friends feels much more doable, and she recommends coming up with an “achievable amount” that everyone in the group can afford.
She told news.com.au that she decided to share money with her mates because she’d heard of other friends doing it.
Greta and her two friends that she shares money with are spread out across Australia. She’s in NSW, one is in Victoria and the other is in the Northern Territory.
Whenever the girls want to get together, they have to spend money on flights and accommodation, which becomes expensive. The savings account was created so they’d always have the money to see each other.
She said saving money together means that it doesn’t feel like it costs them anything when they get the “opportunity” to see each other.
“Breakfast, lunch, dinner, drinks, whatever we want. It all feels like it has been paid for,” she said.
Ultimately, Greta said that it makes catching up “stress-free” and not having enough money doesn’t get in the way of seeing each other.
In Greta’s case, one person manages the funds and the others contribute, but she stresses that it’s about making sure you “trust” the person in control of the money.
It has become “quite rare” for Greta and her mates to find the time to catch up, so when they do, they want to go all out. For instance, she’s seeing them for her 30th this year and the expense of seeing each other has already been taken care of.
“If we are in the same state for a couple of days we catch up, and because our money builds over time, when we see each other, it is like it’s free,” she said.
Greta said that budgeting for your friendship is a great idea because it’s a commitment and you are investing in seeing your mates.
“It does feel like you’re putting more into your friendships,” she said.
Ultimately, she’s happy to invest in her lifestyle and “friendships are a huge part of it”.
Therefore, she’s “happy” to contribute money to prioritise seeing her friends.
Greta’s financial plan isn’t unusual among young people anymore. Plenty of people replied to her video and revealed they have similar financial habits in place with their friendship groups.
“My best friend and I do this and we call it a friendship fund,” one wrote.
“We have 7 best friends doing $50 a month and we are 18 months into planning a girl’s trip,” another shared.
“I am doing this with two of my besties. We are transferring $30 a fortnight,” one said.
“Three friends and I have been doing this for 20 years now,” another wrote.
One person added: “My friends and I throw in $39 per month. We have done it for three years and no withdrawals.”