What is 'money dysmorphia' and how serious is it?

Money dysmorphia is alive and well – and many unknowingly suffer from it without even knowing what it is.

Social media has a big part to play when it comes to young people and their financial decisions, with some feeling influenced or pressured to live a certain lifestyle due to the world of Instagram.

Well now, a study has resurfaced that suggests young people are obsessed with becoming rich.

In a study conducted by Qualtrics for Intuit Credit Karma in 2013, money dysmorphia was described as: "Having a distorted view of one’s finances that could lead them to make poor decisions."

In the survey, 59 per cent of Millennials and 48 per cent of Gen Z admitted to being on their money goals.

Ted Jenkin, CEO of oXYGen Financial, said the high life showed on social media is partially to blame.

"Social media has convinced 22-year-old kids that they should have vacations on the Amalfi Coast, Louis Vuitton Bags, and an HGTV kitchen before they’ve earned it," he said.

In turn, some Gen-Zers are tackling the problem head-on in 2024 by following the latest TikTok trend of 'loud budgeting.'

"Loud budgeting is a new concept I'm introducing for 2024. It's the opposite of quiet luxury. But if you know any rich people, you know that they hate spending money so it's almost more chic, more stylish, more of a flex," TikToker Lukas Battle said in a viral clip that's racked up more than 1.4 million views.

"Let’s send a message to corporations about the national inflation level. Let’s take a stand," he continued. "It’s not 'I don’t have enough,' it’s 'I don’t want to spend.'"

He likened the money trend to "sneaking candy into a movie theatre" in that "you feel like you got away with something."

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