“I am poor and will never be able to take the vacation I want or live in the apartment I would like.” Hence anxiety and stress. Gen Z is always looking for greater wealth, flaunted by social media and increasingly suffers from Money dysmorphia. A risk, because in addition to chronic dissatisfaction this leads to reckless and dangerous financial choices. And, surprisingly, those with more economic availability more easily fall victim to Money Dysmorphia.
Money dysmorphia is a cognitive distortion that leads people to an incorrect perception of their economic situation. According to a survey by HYPE (the Italian neobank with over 1.8 million customers) and IPSOS, 72% of young people between 18 and 24 believe that money is a priority. The percentage drops to 68% in the 25-34 age group. If we look at the 18-65 age group, the percentage is lower: 57%. And in this case, 61% believe that money is never enough, while among the under 24s it rises to 75%, to 68% between 25 and 34. This clearly tells us that it is young people, under 34, who suffer most from Money Dysmorphia. And if the obsession with wealth is at 3% for the over 65s, it reaches 40% in the under 24s. Then there is a gender difference. Men are more obsessed than women, with 44% of 18-24 year olds compared to 29% of women the same age. A study by Credit Karma also confirms this: 43% of Gen Z and 41% of millennials suffer from a misperception of their finances, with 48% of Gen Z feeling financially behind the norm. This percentage rises to 59% among Millennials.
Emotions are added to the pursuit of wealth and distorted perception of one’s financial situation. As in a Inside Out When it comes to economics, anxiety is the main theme. Research highlights that only half of people feel positive about money: tranquility, gratification and hope. Then come the negative emotions, especially for women: anxiety (45% versus 27% for men), frustration (24% versus 14%) and guilt (15% versus 9%). And anxiety about one’s financial situation mainly affects young people, especially women aged 25-34 (37%) and men aged 18-24 (34%). The older you get, the more it decreases: in the over 65s it affects 14% of men and 18% of women. Young people are obviously the most worried for contingent reasons: precarious work, rising inflation without savings and uncertainty about the future. But, surprisingly, anxiety affects those who have more money. It reaches peaks of 70% among the wealthy, against less than 50% among those who have difficulties, to drop to 30% among those who instead have many difficulties.
A large gender gap also emerges. Men tend to associate money mainly with success (17% vs 12%), growth (17% vs 10%) and power (15% vs 11%). For women, however, it is a tool for achieving independence (64% vs 52%) and planning (23% vs 19%). And if women are also young (under 24) they are also less autonomous than men in managing money (49% vs 38%).
Young people are therefore more obsessed (both men and women) with money and wealth, they also inform themselves more it is true, but Money dysmorphia has a direct impact on their financial behavior, as well as on the emotions of life. The risk is to make irrational and risky decisions, such as overspending and making investments driven largely by social media, which are, at the same time, the main source of incitement to the continuous pursuit of wealth. A vicious circle it seems.
