In today's digital age, where social media dominates our daily lives, a new financial phenomenon has emerged among the younger generation: money dysmorphia. This is a kind of thinking disorder that distorts a person's perception of his or her finances, resulting in bad money-related decisions and feelings of incompetence. Now, we will discuss what money dysmorphia is, with its hidden roots, resulting in the effect it has on individuals, and more especially the youth, and its solutions.

What is Money Dysmorphia?

Money dysmorphia resembles body concerns where individuals think that the flaws that are in front of them are not really there or they are too much. On the other hand, For example, the situation when the perceptions of an individual about his or her material wealth are unrealistic and contradict the real financial situation is known as Money Dysmorphia. It is known for the lack of self-esteem and the obsession to try really hard to reach the level of wealth desired, usually, the one that was inspired by comparisons with others, especially seeing them on social media.

Young Generation affected by Money Dysmorphia

The emerging evidence suggests that money dysmorphia is almost endemic with young Americans with Gen Z and millennials almost 50% of this population suffering from money dysmorphia. The virulent role that social media plays alongside economic hardship and social pressures helps push a lot of young people into a belief that they are not good enough in matters of income. Regardless of the high saving rate they may demonstrate, some people still complain about being financially backward. This is a testimony that people are caught up in the race with their perception, unlike their reality.

Causes of Money Dysmorphia

- Social Media Influence: The posts that are managed on platforms like Instagram create untrue standards and needs by people and as a result, individuals compare their financial quality with other false things.

- Societal Pressure: Through social media, there is a worldwide feeling among the younger generations to show both achieved success and appearance of affluence. These pressures might be due to an individual’s family background, their friend’s life stories, and the prevailing norms of society which could contribute to such feelings of inadequacy in terms of finances.

- Economic Uncertainty: Unpredictable economic future and low self-worth can inject the feeling of instability so that people search for validation through expensive goods and displaying their consumption.

Effects of Money Dysmorphia

- Poor Financial Decisions: Lots of times; as a result of money dysmorphia, a person will start to spend without considering or even getting into debt by the way they strive to measure up the standards of wealth that social media portray.

- Mental Health Impacts: Consistent comparison to "others" on social media is no doubt one of the driving forces behind the high rate of stress, anxiety, and even dissatisfaction in the financial world. The pint to achieve a non-achievable level of wealth and success can affect their mental well-being which can pave the way for inadequate and low self-esteem.

- Strained Relationships: Money dysmorphia can negatively affect relationships, particularly with family and friends because people might feel they need to keep up appearances, and this can affect how they share resources.

Methods to Prevent Money Dysmorphia

- Financial Education: Educating people about the intricacies of financial education, especially for young people, will better enable individuals to appreciate the value of managing their finances, budgeting, and savings.

- Promote Financial Authenticity: Conditioning people for realness and truthfulness in financial conversations may aid in combating the unrealistic standards that social media puts forth. Stressing financial goals that reflect vital features of individuals such as their values and choices can be a big process in correcting attitudes towards money and wealth.

- Budgeting and Savings Strategies: Practical budgeting and savings strategies like establishing achievable financial goals, creating a budget, and automating savings contributions can help people gain control over their finances and remove the inferiority complex.

- Limit Social Media Exposure: Making people aware about limiting their exposure to social media, particularly the content that promotes materialism and consumerism will have a positive effect on mental health.

- Seeking Professional Support: In the case of people who are badly hit by money issues and those with mental problems that are related to financial stress, consulting a financial advisor or a mental health professional, might be helpful.

Conclusion

"Money dysmorphia" - an alarming trend among young people, fostered by the ever-present dominance of social media and the negative follow-up social pressure, is deemed dangerous. Knowing the root causes and the impact this issue could have on the wellness of a financial person could help individuals make positive changes to address it. Through education, awareness, and intelligent financial planning people's perspectives will change and finally, they can avoid comparing with others and learn to manage their finances well in the long run.