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Almost 50% Young Adults are Obsessed With Wealth; Here's why it Could Lead to Higher Debt

This fixation on wealth, coupled with what the survey terms "money dysmorphia," highlights a concerning trend that may impact the financial well-being of these age groups

BY KOMAL BANCHHOR

PUBLISHED FEB 7, 2024

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The desire to earn more money isn't something new, but social media acting as a window into the lives of those with wealth or having the ability to appear rich, has led to a major shift in the younger generation's attitude towards money. The findings of a survey have revealed that almost half of Generation Z and millennials, 44% and 46% respectively, admit to being "obsessed with the idea of being rich." This fixation on wealth, coupled with what the survey terms "money dysmorphia," highlights a concerning trend that may impact the financial well-being of these age groups.

The survey, conducted by Qualtrics in December 2023, indicates that 27% of all Americans share this obsession. This "money dysmorphia" has shaped a distorted view of finances among young adults, that could lead to poor decision-making. As economic uncertainties persist in 2024, 59% of millennials and 48% of Generation Z individuals feel that they are falling behind on the path to achieving their financial goals.

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Financial experts have pointed fingers at social media as a major contributor to the discontent observed among young adults. Growing up surrounded by platforms like YouTube and Instagram, where influencers flaunt seemingly luxurious lifestyles, has created a desire for a similar freedom and financial abundance. A money coach also noted that younger generations value less work and more free time, with aspirations to avoid the financial struggles witnessed by their parents and grandparents.

Social media has painted a flashy picture with extravagant vacations, designer bags, and opulent lifestyles, fostering unrealistic expectations. Jenkin believes this has fueled "money dysmorphia," making young individuals believe that they should attain these luxuries before earning them, potentially pushing them under debt burdens.

High living costs and substantial student loan burdens add to the financial pressures faced by young adults, argues financial adviser Justin Rush. The pursuit of wealth, in this context, may be seen as a response to the desire for financial security amid these challenges.

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However, there is a glimmer of hope has appeared on the horizon in 2024, in the form of a social media trend called "loud budgeting," which involves young adults proudly sharing their frugal lifestyles and budgeting tips on platforms like TikTok. Gen Zers are encouraging each other to embrace a mindset shift, challenging the societal norms of overspending. TikToker Jenny Park emphasizes the need to rewire one's thinking and stop comparing oneself to others, particularly those living luxurious lifestyles on borrowed money.

As financial pressures persist, financial experts advise young adults to prioritize investing in their retirement and reevaluate their relationship with money. Shifting away from the obsession with immediate wealth and embracing a more sustainable financial approach is the key to long-term financial well-being for the younger generation.

The phenomenon of "money dysmorphia" and the pursuit of a high-end lifestyle before earning it highlights the need for a shift in the younger generation's mindset. That is why trends such as loud budgeting and others that focus on savings and investments are the need of the hour.