A recent survey by Credit Karma and Intuit revealed that a significant portion of Millennials and Generation Z feel obsessed with the idea of being wealthy and experience financial dysmorphia.
This is attributed to social media, influencers, and a desire for freedom and financial security in the face of economic challenges.
However, a shift in trend is emerging, as young adults are embracing frugal living and budgeting, as seen in the “loud budgeting” movement on social media platforms like TikTok.
“Their value systems align with less work and more free time,” money coach Lisa Chastain said. Younger generations don’t want to “work their lives away” as generations before them have.
“They want freedom. Their parents have worked their lives away. Gen Z wants freedom and that’s going to mean making a lot of money. With the creation of YouTube and YouTube stars, it seems more tangible to this generation. This is causing the financial dysmorphia of this generation. They also have access to investing at a much younger age, which gives them the confidence that they can build wealth without the sophistication of their elders,” she noted.
“Social media has convinced 22-year-old kids that they should have vacations on the Amalfi Coast, Luis Vuitton Bags, and an HGTV kitchen before they’ve earned it,” which is the “primary reason Gen Z has money dysmorphia,” Ted Jenkin, CEO of oXYGen Financial said.
“Unfortunately, most young people don’t post up their net worth on Instagram and TikTok and you can tell if any of the luxury items they claim to have are actually real. Mostly, it gives young people the fear of missing out and actually driving them further into debt,” he added.
“The pursuit of wealth may stem from a desire for financial security in the face of these challenges,” financial advisor Justin Rush said.
The trend encourages reevaluating spending habits and avoiding comparisons with others’ luxurious lifestyles to prevent financial strain.
“It’s OK if you don’t go on vacation. It’s OK if you don’t have the latest handbag, it’s OK if you don’t buy the latest skincare product,” TikToker Jenny Park said.
“You need to rewire your brain and stop comparing yourself to others,” she added.
“Stop normalizing living beyond your means,” Park said.
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