A recent Wells Fargo study found that image-obsessed Millennials are more likely than previous generations, even though many struggle with high housing costs, student loan payments, and compounding interest on credit card debt. He also believes that it is important to “appear” to be financially successful.
Fifty-four percent of Millennials surveyed by Wells Fargo say they have been greatly affected by the cost of living crisis, while 59% of those ages 28 to 43 say they feel less comfortable flaunting their finances. I think it’s important. The clothes you wear, the car you drive, the house you live in.
In contrast, the survey found that only 35% of Gen
This “financial dysmorphia,” as Intuit Credit Karma calls it, makes millennials obsessed with flaunting their wealth, which can lead them to pile up more debt, advises Wells Fargo. said Emily Irwin, managing director of planning.
“There is a growing trend to express oneself in non-reflexive images. [of] their actual financial situation,” Irwin told Fortune magazine, which first reported on the investigation.
“For some, it can even become a ‘fake it till you make it’ mentality.”
More importantly, the Wells Fargo study surveyed 1,000 affluent millennials with annual incomes of $250,000 or more, and found that it’s not just low-income people who are “struggling with this external image.” Irwin added that this is further proof that there is no such thing.
“We live in a world where our net worth appears to be ‘clickable.’ Anyone can find out how much they paid for their house, handbag, or car. So showing off your luxurious lifestyle can feel more exhilarating than saving money. ” Irwin told the Post on Thursday.
According to a Wells Fargo study, nearly one-third of high-income people in this age group buy things they couldn’t afford to impress others or feel like they “fit in.” 34% say they have been guilty of exaggerating their income, savings, and expenses. Maintaining the appearance of being financially successful.
Irwin suggested that millennials reevaluate how they view their finances.
“Connecting your financial actions to short- and long-term goals is the best way to make your money story a reality and live sexy within your means on and off TikTok,” she said.
It’s not easy. Millennials are facing some of the worst economic headwinds in recent history. Stubbornly high inflation has pushed interest rates to a 22-year high, hitting young homebuyers hard.
The average interest rate on a 30-year fixed-rate mortgage in the U.S., tracked weekly by Freddie Mac, is 6.64%, near a multi-decade high but down from a peak of 8% last October.
Credit card debt is also at an all-time high. It’s unclear exactly how many millennials are facing debt problems, but the New York Fed’s third-quarter report released last November found that overall debt levels increased by 1.3% over the three-month period, and 17 announced that it had reached $290 billion.
Many Millennials are also struggling with student loan payments.
About 40% of 22 million borrowers were in default on their payments in October, when payments resumed after a three-year hiatus, according to U.S. Department of Education data.
Despite President Joe Biden’s relief program, there are signs that even fewer borrowers made payments in November.
