Navigating Money Dysmorphia: Understanding the Obsession with Wealth Among Gen Z and Millennials

Are Gen Z and millennials too focused on getting rich? It seems like it, and it might be causing them some problems. Nearly half of those surveyed, about 45%, are really into the idea of being rich. That’s almost half! 

And it’s not just a wishful thought. Many of them, around 43% of Gen Z and 41% of millennials, feel something called “money dysmorphia.” This is when you feel like you’re not doing well financially, even if you actually are. 

It’s not just a few people feeling this way. Lots of Gen Z folks, about 48%, feel like they’re lagging behind financially. And even more millennials, about 59%, feel the same. 

This issue is affecting younger people more than older ones. The study showed that 43% of Gen Z and 41% of millennials experience money dysmorphia, compared to only 25% of Gen X and just 14% of people aged 59 or older. 

Feeling behind financially is a big part of the problem. 82% of those with money dysmorphia feel like they’re not keeping up. But here’s the twist: almost 60% of them actually feel financially stable. So, there’s a big gap between how they feel and how they’re actually doing. 

Surprisingly, many of those who feel this way have a good amount of money saved up. 37% of them have more than £10,000 saved, and 23% have over £30,000.  

The obsession with being rich might be making things worse. Over a quarter of those surveyed, about 27%, say they’re obsessed with being rich. And the younger you are, the more likely you are to feel this way. Nearly half of Gen Z and millennials admit to being obsessed with the idea. 

But despite this obsession, more than half of those surveyed don’t think they’ll ever be rich. And for those with money dysmorphia, that number jumps to 69%. 

This obsession is causing real problems. 95% of those with money dysmorphia say it’s hurting their finances. It’s stopping them from saving, making them overspend, and pushing them into debt. 

Experts say it’s like trying to keep up with others and always feeling like you’re falling short. They suggest taking a good look at your finances, setting clear goals, and focusing on your own progress instead of comparing yourself to others. 

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.