BMO Index: "Date‑flation" Raises US Dating Costs, Squeezes Budgets Ahead of Valentine's Day

BMO Index Finds Date‑Flation Is Squeezing Consumer Budgets Ahead of Valentine’s Day

BMO: Rising dating costs force shifts in household finances

Bank of Montreal’s Real Financial Progress Index is showing a pronounced rise in dating expenses that strains consumer budgets and could reshape retail and lending behaviour, the bank says. The index finds the average all‑in cost of a U.S. date — including grooming and gas — climbs to $189, up 12.5% from $168 in 2025, and Americans spend an average $2,323 on dates over the past year. BMO publishes the survey on Feb. 11 ahead of Valentine’s Day and calls the trend “date‑flation,” saying it outpaces the broader cost of living.

The survey reports clear behavioural shifts as consumers respond to higher discretionary costs. About half of respondents say they go on fewer dates or choose cheaper activities, and the mean number of dates among daters falls to roughly 12 from about 14 a year earlier. Nearly half of singles (47%) say dating is not financially worth it, while 58% of those in serious relationships report financial dependence on a partner, up from 40% last year. The report also documents a K‑shaped dating economy: 14% now report a typical date costs them nothing, up from 12%, while 14% say a typical date costs $300 or more, up from 11%.

The findings have direct relevance for banks and consumer finance providers as discretionary spending patterns tighten. Younger cohorts feel the largest squeeze, with 50% of Gen Z and 40% of Millennials saying dating costs hinder their financial goals; spending per date jumps most for Millennials to $252 (up 32% year‑over‑year) and for Gen Z to $205. Paul Dilda, head of U.S. consumer strategy at BMO, warns rising dating costs can “price singles out of love” and urges budgeting and open financial communication as ways to protect both romance and financial progress. Lenders and retail banks may view the shift as a signal to expand budgeting tools, financial coaching and product offers tailored to constrained discretionary wallets.

Practical responses

Respondents say they adapt in different ways: 14% report paying nothing for dates by favouring picnics, hikes and at‑home meals, while others continue premium outings. That divergence complicates household budgeting for those trying to save, invest or pay down debt amid broader economic pressures.

Signal to the industry

The survey offers banks a fresh consumer data point on discretionary spending and financial stress. Financial institutions may use such insights to refine customer engagement, risk assessment and product design as rising living costs alter how people prioritise spending.