Young people are more likely to admit they are “obsessed” with the pursuit of longevity, according to a new survey by Credit Karma and Intuit.
The survey conducted by Qualtrics for Intuit Credit Karma in December 2023, found that 44% of Generation Z and 46% of Millennials said they were “fascinated by the idea of becoming rich,” compared to 27% overall. who are Americans.
A similar number of young adults reported experiencing “money dysmorphia,” which the survey defined as “having a distorted view of one’s finances that may lead them to make poor decisions.”
While economic conditions remain uncertain in 2024, the survey also found that 59% of Millennials and 48% of Gen Z feel they have reached their financial goals.
Financial experts describe how social media, among other factors, contributes to feelings of dissatisfaction among some young adults.
Millennials and Gen Z are the first adults to grow up on social media and websites like YouTube where they are “subconsciously being marketed to, 24 hours a day,” money coach Lisa Chastain told Fox News Digital.
While a desire to achieve a social status is not new, the rise of “influencers” has led the younger generation to desire the kind of freedoms found in social media stars. their lifestyles and their finances.
“Their value systems align with less work and more free time,” Chastain describes.
These generations also do not want to “work their lives” and still experience financial hardship, as they saw their parents and grandparents experience.
“They want freedom. Their parents work their lives. Gen Z wants freedom and that means earning more money. With the creation of YouTube and YouTube stars, it seems more tangible in this generation. This is the cause of financial dysmorphia in this generation. They also have access to investment at a younger age, which gives them the confidence that they can build wealth without the sophistication of their elders,” he added.
oXYGen Financial CEO Ted Jenkin said the lavish lifestyles of social media influencers are causing a “huge disconnect” among the younger generation between “having wealth and having things. “
“Social media has convinced 22-year-olds that they need to take a vacation to the Amalfi Coast, Louis Vuitton Bags , and an HGTV kitchen before they get it,” and he believes it’s “the main reason people have money.” Gen Z dysmorphia.”
“Unfortunately, most young people do not post their net worth on Instagram and TikTok and you will know if any of the luxury items they say are in reality. Usually, this gives young people on the fear of losing and actually driving them into debt,” he concluded.
Expensive student loans and high living costs are also putting “unprecedented financial pressures” on young adults, argues financial adviser Justin Rush.
“The search for wealth may stem from a desire for financial security in the face of these challenges,” he explained.
Chastain advises millennials to pay more attention to investing in their retirement and make their relationship with money a priority.
In 2024 however, the tide may turn.
Many young adults are breaking away from their big spending habits and proudly living more frugal lifestyles, according to a new social media trend called “loud budgeting.”
Gen Zers fill TikTok with tips on how to budget and tell friends they can’t go out to eat or travel under the hashtag.
“It’s OK if you don’t take a vacation. It’s OK if you don’t have the latest bag, it’s OK if you don’t buy the latest skin care product,” TikToker Jenny Park told her followers in a recent post.
“You have to rewire your brain and stop comparing yourself to others,” he said, arguing that most people live lavish lifestyles while in credit card debt.
“Stop normalizing living beyond your means,” Park said.