Gen Z is obsessed with getting rich.

Gen Z is obsessed with getting rich despite being one of the most economically disadvantaged generations ever, experts say. newsweek That may be why.

This is the latest from new research from Intuit Credit Karma, which shows that both Gen Z (born between 1996 and 2012) and Millennials (born between 1981 and 1996) are obsessed with getting rich overall. I discovered that there is. Gen Z respondents in the study reported being obsessed with getting rich at 44 percent, while Millennials were slightly more likely to be obsessed at 46 percent.

By comparison, only 27 percent of the American population is obsessed with being wealthy.

What may be contributing to this problem is that both generations report having a “money dysmorphophobia.'' Financial dysmorphia, described as feeling insecure about one's financial position regardless of the actual situation, was prevalent among Gen Z and Millennial respondents, with 43% of each generation percent and 41 percent reported it.

Overall, only 29 percent of the 1,000 Americans surveyed reported experiencing financial dysmorphia, and there appears to be no correlation between that experience and their actual financial situation. is.

Approximately 37% of people with money dysmorphic disorder had savings of $10,000 or more, and 23% of those had savings of $30,000 or more. The median savings in America is just $5,300.

“Money dysmorphia is like a modern-day version of Keeping Up with the Joneses,” said Courtney Alleb, consumer finance advocate at Credit Karma. “Many people are looking at their financial situation and comparing themselves to colleagues, people on social media, and even celebrities, which creates feelings of inadequacy. There is a disconnect between this perception and reality. Distortions can prevent people from taking steps toward achieving their financial goals.” ”

A big part of the obsession with being wealthy also lies in the fact that Gen Z and Millennials face financial challenges that their parents may not have experienced.

From the affordability crisis in the housing market to record student debt, Gen Z and Millennials are not easily able to enter adult financial life, and their dreams of getting rich are no longer as strong. According to financial therapist Lindsey Brian Podvin, He is the founder of Mind Money Balance.

“For Gen Z and Millennials, being rich may be intriguing because they feel even a middle-class lifestyle is out of reach,” says Brian Podvin. Ta. newsweek. “Falling home prices, crushing student loan debt, and exorbitant costs of childcare can naturally lead to fantasies of achieving financial security, and ‘wealth’ is part of that fantasy. It may be the department.”

Brian Podvin says many Gen Z and Millennials grew up watching their parents lose large portions of their net worth due to stock market crashes and depleted housing stocks, which increases their fear of financial instability. He said that

They are also digital natives, with social media comparisons pervasive and a culture that is constantly aware that there are wealthier and seemingly “happier” people out there.

“Social media has amplified people's feelings of dysmorphophobia about money, but that doesn't mean these feelings weren't prevalent in previous generations,” said certified financial planner JP Geisbauer. newsweek. “Keeping a vibrating chime device in your pocket that notifies you every time someone wealthier than you posts a photo of their pajamas, watches, or handbags will only exaggerate that feeling.”

Of the overall group experiencing money dysmorphia, 82% said they felt behind financially, 40% were unable to save because of the problem, and 38% said they overspent. The answer was that it was the cause of

There are also pressing concerns that Gen Z and Millennials will not be able to enjoy a comfortable retirement, especially since Social Security is projected to run out by the early 2030s.

“When millennials were born, 65 was considered old age, but now 65 is considered middle age,” says Nancy Hite, financial planner and founder of Strategic Wealth Advisors. said. newsweek. “While many people have been saving money for retirement at age 62 or 65 through IRA, 401K, and 403b accounts, Millennials are now realizing that their savings won't last 30 years. , it is unlikely that they will maintain the financial independence they desire.”

Still, there are steps you can take to help those struggling with financial dysmorphia. First, Alev says, is to take an honest look at your finances.

“Set clear goals, make a plan, and most importantly, stay focused on your paper,” Alev says. “If your goal is to increase your savings, start by auditing your finances to see where you can make room for savings in your budget.”

Scheduling automatic payments from each paycheck can also help you stay accountable and grow your savings over time, Alev said.

Even for Millennials and Gen Z, their financial situation and sense of wealth is likely to change over the next few years.

Gen Z and Millennials may not be in the best financial position right now, but these groups are in for a major asset restructuring.

Baby boomers are the wealthiest generation in history, accumulating more than half of U.S. household wealth. But when they die, their children, mostly Millennials and some Gen Z, will hold an additional $84 trillion in wealth.