There’s a lot of evidence suggesting that social media has a negative impact on self-esteem, but it’s not limited to appearances and social status. It turns out, it’s also true when it comes to people’s financial situations as well. This is so common now that there’s a new term for it: “money dysmorphia.”
It describes the distorted view people have of their finances, usually as a result of comparing their financial situation to others and feeling like theirs is insufficient. Nearly a third (29%) of Americans experience “money dysmorphia,” according to a recent report from Credit Karma, but it’s even worse for younger generations. About 43% of Gen Z and 41% of millennials struggle with comparing themselves to others and feeling behind financially.
“Money dysmorphia is kind of like today’s version of keeping up with the Joneses,” explains Courtney Alev, consumer financial advocate at Credit Karma, adding that it’s a “distortion between perception and reality.” The thing is, a lot of folks who struggle with money dysmorphia have above-average finances, Credit Karma’s research shows. Another study by Edelman Financial Engines finds a strong connection between feeling badly about your money situation and how much time you spend on social media. To avoid experiencing money dysmorphia, experts advise spending less time on social media and creating “purchase hurdles” to force you to think through big-ticket purchases.
Source: CNBC
Scott's Thoughts:
- Just remember: stuff won’t make you happy and no one’s life is as good as they make it look on social media!
- I feel it all the time to be honest. I try not to, but have to fight back the desire to own more stuff than I need.
- Social media has good things, and bad things. Bad being this example.