According to a recent study, Generation Z is particularly affected by financial dysmorphia (nearly half of young people), notably because of social media.
Young people are increasingly addicted to their smartphones and social networks. While some accounts to follow are rather fun and educational, the fact remains that most influencers share a daily life that seems far removed from our own reality. Result: teenagers are constantly exposed to images of luxurious life: heavenly vacations, designer clothes, sports cars, luxury watches and festive evenings… That we see scrolling on Instagram, TikTok or Snapchat. The problem is that these representations create intense social pressure to achieve this same level of wealth and consumption, often unrealistic.
A study conducted by the American company Qualtrics explored the impact of social networks on the financial perception of young adults. Thus, after spending time scrolling through social networks, 60% of them feel dissatisfied with their financial situation. And 40% admit to having bought something they could not afford, just to show it on social networks.
Excessive spending and the need to show off what you have acquired by comparing yourself to others is typical of financial dysmorphia (a disorder in perceiving your financial situation). People affected by this phenomenon believe that they do not earn enough, do not save enough or do not have enough assets, even if their real situation is stable or prosperous.
For example, a student may see pictures of his friends traveling in Bali or driving a luxury car, and feel deep frustration if he himself cannot afford such expenses. This constant comparison can create a sense of failure and lack, even if the student lives a comfortable and financially stable life.
To combat this phenomenon that can lead to poor financial decisions such as impulsive purchases beyond our means, it is important to promote a more conscious use of social networks and encourage solid financial education from a young age in order to help teens manage their money in a more responsible and thoughtful manner.