‘Money dysmorphia’ has been increasingly recognized as a distorted perception of one’s financial situation. This condition can trigger excessive hoarding, extravagant spending, and emotional distress due to misconceptions about financial stability. Experts advocated for its recognition and proposed treatments including financial literacy education and counseling.
A recent survey showed 29% of Americans, particularly 43% of Generation Z and 41% of Millennials, grapple with money dysmorphia. It’s a troublesome symptom of the larger crisis of financial literacy and mental health in these demographics.
‘Money dysmorphia’, while relatively a new term, encapsulates a feeling recognized by many. Sufferers often erroneously believe they’re less financially stable, causing undue stress. Although typically overlooked, the identification of this condition could pave the way for healing and promote a healthier financial life.
People with ‘money dysmorphia’ tend to either underplay or overvalue their financial standing.
Understanding ‘money dysmorphia’ in young adults
It could manifest as hoarding money out of a false fear of financial inadequacy, or reckless spending due to an inflated sense of wealth. Both scenarios can lead to severe financial repercussions such as debt, and even bankruptcy.
Living beyond their means or refraining from enjoyment due to an irrational fear of financial insufficiency are also common behaviors among those suffering from money dysmorphia. This warped perception of their finances can negatively affect their relationships, and potentially lead to continuous financial stress and excessive spending.
‘Money dysmorphia’ can also result in missed investment opportunities due to an excessive saving mindset. Other symptoms include obsessive checking of bank balances, avoiding financial discussions, comparing personal finances to others, and excessive anxiety about future finance. This could tie one’s self-esteem to their perceived financial status and intensify the problem, thus making it harder to overcome.
People suffering from this condition are often too anxious to consider investment opportunities, which could harm their long-term financial health. The excessive concern about finances can also lead to social isolation, as financial discussions become a source of stress rather than a normal conversation topic. This cycle, if left unchecked, could escalate the problem and make it more difficult to overcome.
