Why Some Americans Borrow for Special Moments — and How to Do It Wisely

More Americans are choosing memorable experiences over faster financial progress. A recent SoFi survey found that almost one in three Americans have gone into debt for an event, and a similar number have agreed to a trip, gift, or celebration they could not easily afford.

For many, the appeal comes down to what experts call “emotional ROI.” But is that tradeoff worth the financial hit? Here is what financial professionals say.

Can Debt for an Experience Ever Make Sense?

There is no simple yes-or-no answer to whether borrowing for an experience is a good idea.

“On paper, taking on debt for an event or experience is usually not ideal,” said Brian Walsh, head of advice and planning at SoFi.

“But people’s financial journeys are not perfectly linear, and we are not robots. Some events — such as a close family wedding or milestone — can feel important enough to attend even when someone did not plan ahead [financially].”

In an ideal situation, these costs would be planned for in advance.

“If you do use debt, have a clear plan to repay it,” Walsh added. “Understand the interest cost and temporarily reduce other discretionary spending to make room for the payments. The goal is to participate without allowing one experience to create lasting financial damage.”

Why So Many People Prioritize Experiences

The survey showed that 72% of Americans, across generations, are willing to give up some financial progress for meaningful moments such as being present for family or taking vacations. Many view those experiences as important memories worth making.

“Emotional ROI is important, but it should not replace financial ROI,” Walsh said. “You can have anything you want, but not everything you want, so the key is prioritizing what matters most and being honest about the tradeoffs.”

He suggested making room for meaningful experiences by trimming spending in areas that matter less, while still continuing to save and invest for the future.

“Long-term goals can feel far away, but compounding means time can be your greatest financial advantage — or a costly one to give up,” Walsh said. “The goal is to enjoy the present without sacrificing the financial independence you want later.”

How To Enjoy Life Without Undermining Long-Term Goals

It is possible to enjoy life now without giving up financial stability later.

“Balancing life and finances starts with recognizing that the goal is not to eliminate enjoyment — it is to spend intentionally,” Walsh said. “Prioritize the experiences that matter most, automate savings and debt payments and look for lower-cost ways to enjoy the things you value.”

A budget is the starting point for making smart money choices.

“Track your spending and focus on the expenses that have the greatest impact, particularly housing and transportation, which are often much larger budget drivers than small daily purchases like coffee,” Walsh said.

“Being intentional about those major costs can create more flexibility to enjoy life while still making progress toward savings, debt repayment and long-term goals.”

How To Keep Experience-Related Debt Under Control

As more people borrow to pay for experiences, having a repayment plan matters.

“Know the total cost, interest rate and monthly payment, and make sure the payment fits comfortably within your budget,” Walsh said.

“To prevent the debt from derailing longer-term goals, temporarily reduce lower-priority discretionary spending, continue making progress on emergency savings and retirement, and pay down high-interest debt as quickly as possible.”

Before committing to an event, make sure you understand exactly how much debt you would need to take on and whether you can realistically repay it, no matter how appealing the emotional reward may be.

“If the payments require sacrificing essentials, missing other obligations or repeatedly borrowing to cover expenses,” Walsh said, “the experience is creating too much financial pressure.”