'Money dysmorphia' traps the younger generations

Never hesitant to rebrand an existing phenomenon, millennials and their Gen Z frenemies are admitting to having "money dysmorphia” — a feeling of insecurity around their financial situation even when the true picture reveals little cause for concern.

Some 43% of Gen Z and 41% of millennials say they suffer from a flawed perception of their finances, according to a recent Credit Karma study. While it might sound like just another form of TikTok-induced anxiety, money dysmorphia is a real problem that can cause someone to make poor or ill-informed decisions.

Having a financial perspective rooted in fear rather than fact is nothing new. Those of us with grandparents belonging to the Greatest Generation will recognize the Depression-era scarcity mentality.