What is 'Money Dysmorphia'?
'Money dysmorphia' refers to a distorted view of one's financial situation, often leading to anxiety or stress about money. Gen Z is experiencing this issue at an alarming rate, despite having higher average earnings and wealth compared to previous generations.
Causes and Consequences
The causes of 'money dysmorphia' among Gen Z are multifaceted. Social media plays a significant role in shaping their perceptions of money and financial success. The constant exposure to curated highlight reels of others' financial achievements can create unrealistic expectations and foster a sense of inadequacy.
The consequences of 'money dysmorphia' can be severe. It may lead to financial decisions driven by anxiety rather than careful planning, potentially resulting in poor financial outcomes.
Practical Tips for Overcoming 'Money Dysmorphia'
1. Practice Financial Literacy: Understanding basic financial concepts and being aware of one's financial situation can help mitigate the effects of 'money dysmorphia'.
2. Set Realistic Goals: Setting achievable financial goals based on one's own circumstances, rather than comparing to others, can help in maintaining a healthy financial outlook.
3. Limit Social Media Exposure: Reducing the time spent on social media or limiting the financial content one consumes can help in avoiding comparisons and reducing financial stress.
4. Seek Professional Advice: Consulting with a financial advisor can provide personalized guidance and help in making informed financial decisions.