Explained: What Is Money Dysmorphia And Why Is Gen Z Likely To Have It

Compared to their parents, Gen Z has greater access to financial information and career freedom. However, not everybody is optimistic about their financial prospects. A new report shows that almost half of young adults experience “money dysmorphia”. Gen Z, or those born between 1997 and 2012, are concerned about saving.

The condition was described as “a negative and unrealistic perception of one’s financial wellness or financial position” by financial therapist Amanda Clayman. She told Business Insider that it is more so “pervasive worry, vigilance – like an internalized feeling of unsafety with money.” This occurs even when there are no financial problems.

Ms Clayman said that over-thinkers “find that money is something that is very easy to worry about.” Further, youngsters are going through severe life transitions like weddings, buying a house, career change, studying or family.

The idea is being discussed since a staggering 50 per cent of Zoomers claim to be dependent on their parents for financial support to save money for marriage, begin a family, or purchase a home. According to Ms Clayman, these decisions were taken by previous generations in “a different environmental context” long before the era of social media demands, credit cards and online payments.

“Once you’re in a later stage of life, you have a little bit more information that you can access,” she said. Further, the previous generations have had more experience and they how to handle money, making them less likely to experience panic,

According to her, it’s not uncommon to assume that everyone around you has an opulent life after taking a look at Instagram. “We can never know all of the intimate details of a person’s financial picture and their history. We are creating a pattern that tells a story based on the incomplete information that we’re picking up,” she said.

Moreover, the idea of pension is now being eliminated and retirement plans have become self-funded. This also adds additional stress aside from inflation and high living costs. According to Ms Clayman, “an attempt to feel better and to quiet the level of anxiety that we’re experiencing” may be the result of the pressure all of this places on young people to hyper-save.