The Pursuit of Riches: Unveiling the Financial Complexities Faced by Gen Z and Millennials

In a world dominated by digital landscapes and the constant allure of opulent lifestyles, a recent survey conducted by Qualtrics on behalf of Intuit Credit Karma sheds light on the financial complexities faced by the younger generations. The findings reveal that a substantial percentage of Generation Z and Millennials, 44% and 46% respectively, admit to being “obsessed with the idea of being rich.” This stark contrast to the 27% reported by the general American population suggests a unique financial perspective held by these young adults.
Termed as “money dysmorphia” in the survey, a phenomenon where individuals possess a distorted view of their finances leading to potentially poor decisions, is reported by a similar number of young adults. As economic uncertainties persist in 2024, the survey also points out that 59% of Millennials and 48% of Gen Z feel behind on their financial goals.

Financial experts weigh in on the underlying factors contributing to this mindset, with social media taking center stage. Growing up in the age of influencers and constant exposure to seemingly lavish lifestyles has created a desire among younger generations to achieve a similar status of financial freedom.
Lisa Chastain, a money coach, emphasizes the role of social media, stating that Millennials and Gen Z are being “unconsciously sold to, 24 hours a day.” The rise of influencers has fueled aspirations for a lifestyle characterized by freedom, less work, and more leisure time. Chastain points out that these generations witnessed their parents and grandparents working tirelessly, prompting a desire for financial freedom without compromising on their quality of life.
Ted Jenkin, CEO of oXYGen Financial, highlights the disconnect between having wealth and acquiring material possessions. He attributes this disparity to social media’s influence, convincing young individuals that they should enjoy luxury items even before earning them. Jenkin believes this has led to what he terms as “money dysmorphia” among Gen Z, driven by the fear of missing out and pushing them further into debt.

While the pursuit of wealth is not a new phenomenon, Justin Rush, a financial advisor, argues that the unprecedented financial pressures stemming from costly student loans and high living costs have intensified the desire for financial security among young adults.
As the financial narrative unfolds, there is a glimmer of change in 2024. A new social media trend called “loud budgeting” is gaining traction, encouraging Gen Z to take pride in budgeting and embrace frugal lifestyles. TikTok has become a platform for sharing budgeting tips, fostering a shift away from big-spending habits.

TikToker Jenny Park advocates for rewiring the brain and avoiding comparisons with others, stressing the importance of living within one’s means. The emerging trend suggests that a significant portion of the younger population is ready to challenge the societal norms of flaunting luxury while drowning in credit card debt.
In this evolving financial landscape, Gen Z and Millennials are navigating the complexities of money, seeking a balance between their aspirations for a prosperous future and the realization that financial well-being goes beyond the facade of material excess. As they redefine their relationship with money, the years ahead may witness a more conscious and pragmatic approach to financial stability.