Most of our friends are in similar financial situations to our own. The people we work and play with come from similar groups, and generally have similar incomes. But most of us have a few friends who seem to be loaded, while others struggle to get by. And some friends are spenders while others are savers. These financial differences can lead to awkward moments. Maybe you need to buy clothes this weekend, but your best friend wants to hit the mall instead of browsing thrift stores. Or maybe your coworkers like to celebrate every birthday by going out for drinks. Even minor differences in income can lead to misunderstandings and hurt feelings. Still, it’s possible to enjoy the company of your friends without going broke. The key is to recognize that peer pressure is often internal; it comes from a desire to fit in. When you recognize that you don’t have to spend to impress your friends, much of the pressure goes away. (MORE: 116 Money Tips: President Obama’s Personal Finance Advice, Best Coupon Sites, Cheap Goods That Make Life Better) Here are some simple ways to cope with social spending situations: Explain your goals. Let your family and friends know that you’re trying to get out of debt or are saving to buy your first house. Ask your friends to help you be good rather than pressure you to do something you’ll regret later. Suggest low- or no-cost alternatives. If your friends want to go to a movie, suggest a matinee. If they want to dine out, name a restaurant you know you can afford. (Better yet, suggest a potluck.) Bike or run together. Go hiking. Play cards or board games. There are tons of ways to have fun without breaking the bank. Budget for social spending. If your circle of friends makes a regular habit of going out, consider building the expense into your budget so it won’t catch you by surprise. If your friends go to happy hour on the first Thursday of every month, for example, … Continue reading Friends with Money: How to Handle Peer Pressure