Shane Tenny, CFP®, addresses a new, unsettling trend in finances - Money Dysmorphia. It's the latest version of the comparison trap and aims to describe a distorted view of one's financial situation and how one is doing financially.
Transcript:
[00:00:00.000] Hi there. Shane Tenny, Managing Partner at Spaugh Dameron Tenny.
[00:00:04.750] I want to come to you today to talk with you about a concerning trend we are seeing in society. It's the latest version of the comparison trap, now called money dysmorphia. You see, according to a survey of over a thousand Americans by Credit Karma, over a quarter of us, and most importantly, over 40% of our Gen Z population, that is, our high schoolers, our college kids, our friends in their mid and late 20s, say they are fixated on the idea of becoming rich.
[00:00:38.920] The fixation is - meaning that young people are often comparing how much money they make or how much money they think they need to make to how much money they think other people are making. And the result? Well, obviously, it's stress. They feel like they don't or will never have enough money. They're feeling conflicted between their salary expectations and spending power versus the reality of how much money most people actually earn. And financial analysts are calling this phenomenon money dysmorphia. It's the modern equivalent of "Keeping Up with the Joneses".
[00:01:27.200] Money dysmorphia is leading our young people to overspend, take on more debt, or hoard their income and be less generous in their giving. Young people are feeling like acquiring wealth is the necessary ingredient for their future comfort and happiness, but the real problem is that they have more “Joneses” than ever to keep up with because of social media. Climbing the class ladder in the US feels more out of reach than ever before. Because, of course, when it comes to social media, we're comparing our reality of our Mondays to what other people post about their Saturdays. Something to think about.
[00:02:04.460] What can we do? Well, let's start with awareness and a conversation. Talk with your kids, talk with your friends, maybe even talk with that person looking back at you from the mirror.
[00:02:17.330] Deep thoughts to move us forward. I'll see you back here next time.