Compared to their parents, Generation Z has more access to financial information and career freedom. But not everyone is optimistic about their financial prospects. A new report finds that nearly half of young people experience “money dysmorphia.” Generation Z, those born between 1997 and 2012, are concerned about saving.
The condition is described by financial therapist Amanda Klayman as “a negative and unrealistic perception of one’s financial health and financial standing.” She told Business Insider that it’s more of a “pervasive worry and alarm, like a sense of anxiety about money.” This can happen even when you don’t have any financial issues.
Kleiman said overthinkers “find money easy to worry about.” What’s more, young people are going through major life transitions, such as getting married, buying a home, changing jobs, studying or starting a family.
The idea is being debated because as many as 50 percent of Zoomers claim they are dependent on their parents’ financial help to get married, start a family, or save up to buy a home — decisions that previous generations made in a “different environment,” Kleiman said, long before the demands of social media, credit cards, and online payments.
“Later in life, you have access to a little more information,” she says. Plus, previous generations have more experience and know how to handle money, so they’re less likely to panic.
She said it’s not uncommon for people to assume that everyone around them is well-off just by looking at their Instagram: “We don’t know every single detail of someone’s finances or background, and we develop patterns that tell a story based on the incomplete information we gather,” she said.
Additionally, the concept of pensions has now disappeared and retirement plans are now self-funded, which adds to the stress on top of inflation and the rising cost of living. All of this could be putting pressure on young people to save too much, “in an attempt to make ourselves feel better and calm the level of anxiety that we’re experiencing,” according to Kleiman.
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