TLDR:
- Money dysmorphia is a financial phenomenon where individuals have a distorted view of their financial standing, leading to poor monetary decisions.
- Gen Z and millennials are most affected by money dysmorphia, due to the influence of social media and the pressure to keep up with unrealistic financial expectations.
A recent study highlighted that 29% of Americans experience money dysmorphia, with higher percentages seen in younger age groups. This distorted view of finances often leads to feelings of being behind financially, despite having more savings compared to the average person. The study emphasized the importance of being realistic about financial goals and taking an honest look at one’s finances to avoid falling into the trap of money dysmorphia. Experts suggest having a personal finance plan, avoiding credit card debt, and not comparing oneself to unrealistic standards portrayed on social media to overcome this harmful financial feeling.
