‘Money Dysmorphia’ Traps Millennials and Gen Zers
Mixed signals about the economy have made it tough for some younger adults to know where they stand financially.
The negative messages are sinking in.
Photographer: Warumpha Pojchananaphasiri/E+ via Getty Images
Never hesitant to rebrand an existing phenomenon, millennials and their Gen Z frenemies are admitting to having “money dysmorphia” — a feeling of insecurity around their financial situation even when the true picture reveals little cause for concern. Some 43% of Gen Z and 41% of millennials say they suffer from a flawed perception of their finances, according to a recent Credit Karma study. While it might sound like just another form of TikTok-induced anxiety, money dysmorphia is a real problem that can cause someone to make poor or ill-informed decisions.
Having a financial perspective rooted in fear rather than fact is nothing new. Those of us with grandparents belonging to the Greatest Generation will recognize the Depression-era scarcity mentality.