Moreover, over 26 percent of Australians are attending fewer gatherings such as weddings and dinners with friends.

Small social gatherings, including brunches and shopping trips, are becoming less frequent as their costs rise.

Financial constraints have led to 16 percent of Australians reducing their attendance at social events.

The ongoing cost of living crisis in Australia is prompting millions to cut back on social interactions and friendships.

Younger Australians, especially Gen Z and millennials, are leading this trend, with 10 percent reporting they have ended friendships, compared to just 2 percent of baby boomers.

One in five Australians is either cutting back on social gatherings or completely removing friends from their lives.

Rebecca Pike, a money expert at Finder, highlights that increasing bills, mortgage payments, and grocery prices make discretionary spending less justifiable.

Pike advises those experiencing financial difficulties to communicate openly with friends about their situations and to avoid incurring debt for social activities.

A recent Finder study indicates that around 4.4 million Australians are downsizing their friendship circles to better manage their expenses.