- Younger generations struggle to make good decisions with money
- This is because social media gives Generation Z and Millennials false perceptions
- The survey was conducted by Qualtrics on behalf of Intuit Credit Karma
Nearly half of millennials and Gen Z are struggling with ‘money dysmorphia’ after the rise of social media influencers led to people having a distorted view of their finances.
A new questionnaire A December 2023 survey by Qualtrics on behalf of Intuit Credit Karma found that young adults are preoccupied with chasing the “high life.”
Research has shown that Generation Z has a distorted view of their finances and struggles to make smart financial decisions, which is defined as money dysmorphia.
Nearly half of those born between 1997 and 2012 feel overwhelmed and behind on their money goals.
Nearly half of millennials and Gen Z are struggling with ‘money dysmorphia’ after the rise of social media influencers led to people having a distorted view of finances (stock image)
The trend of people on social media wondering how well they were doing with money gained viral success last month.
According to the study, 43 percent of Generation Z and 41 percent of Millennials experience money dysmorphia, while 25 percent of Generation X and 14 percent of people aged 59 or older feel the same way.
The survey also found that 50 percent of millennials and 48 percent of Gen Z feel behind in achieving their financial goals.
Financial experts have revealed that these percentages come down to social media posts that give younger generations the wrong idea of wealth.
That’s what financial coach Lisa Chastain said Fox Business that Gen Z and millennials grew up with influencers, adding that they were “unknowingly marketed to them, 24 hours a day.”
As social media stars showcase their lavish lives online, younger generations have learned to aspire to extravagant vacations and expensive shopping sprees.
Lisa told the outlet, “Their value systems equate to less work and more free time.”
She noted that younger generations don’t want to “eliminate their lives,” but they still face financial challenges like they saw their elders go through.
Research has shown that Generation Z struggles to make smart financial decisions, which is defined as money dysmorphia (stock image)
She told the outlet, “Their parents worked their lives away. Generation Z wants freedom and that means making a lot of money.
“With the creation of YouTube and YouTube stars, it seems more tangible for this generation. This is causing this generation’s financial dysmorphia.
“They also have access to investing at a much younger age, giving them the confidence that they can build wealth without the sophistication of their elders.”
Meanwhile, oXYGen Financial CEO Ted Jenkin explained that influencers bragging about their lifestyles online have led to a “major disconnect” among younger generations.
He added, “Social media has convinced 22-year-old kids that they need vacations on the Amalfi Coast, Louis Vuitton Bags and an HGTV kitchen before they earn it.”
Ted noted that this is the main reason younger generations have “money dysmorphia.”
He added that because of their social media feed, they often feel like they are missing out, so they end up taking on credit card debt to feel like they belong.
Lisa noted that both Gen Z and millennials should pay more attention to investing in their retirement plans.