- Younger generations are struggling to make good decisions with money
- This is because of social media giving Gen 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 has prompted people to have distorted views of their finances.
A new survey conducted by Qualtrics on behalf of Intuit Credit Karma in December 2023 has revealed that young adults have become consumed with chasing the ‘high life.’
Research has shown that Gen Z has a distorted view of their finances and struggle to make smart financial decisions, which is defined as money dysmorphia.
Nearly half of those born between 1997 to 2012 feel swamped and behind with their money goals.
The trend that saw people on social media questioning how well they were doing with money gained viral success last month.
According to the survey, 43 per cent of Gen Z and 41 per cent of millennials are said to be experiencing money dysmorphia, while 25 per cent of Gen X and 14 per cent of people aged 59 or older are feeling the same way.
It also found that 50 per cent of millennials and 48 per cent of Gen Z feel behind on their financial goals.
Financial experts have revealed that these percentages have boiled down to social media posts giving younger generations false perceptions about wealth.
Financial coach Lisa Chastain told Fox Business that Gen Z and millennials were raised with influencers, adding that they were ‘unconsciously sold to, 24 hours a day.’
Due to social media stars showcasing their lavish lives online, younger generations have been taught to strive for extravagant vacations and costly shopping sprees.
Lisa told the outlet: ‘Their value systems align with less work and more free time.’
She noted that younger generations don’t want to ‘work their lives away,’ but find themselves still experiencing financial issues like those they saw their elders go through.
She told the outlet: ‘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.’
Meanwhile, the CEO of oXYGen Financial Ted Jenkin explained that influencers boasting their lifestyles online have prompted a ‘major disconnect’ in younger generations.
He added: ‘Social media has convinced 22-year-old kids that they should have vacations on the Amalfi Coast, Louis Vuitton Bags, and an HGTV kitchen before they’ve earned 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 end up driving themselves into credit card debt to feel like they fit in.
Lisa noted that both Gen Z and millennials should be paying more attention to investing in their retirement plans.