ACMA Hrishikesh R Nambudiri
''The influence of social media is astonishing. It's disheartening to see the false lives that some people lead''
Social media is a widely used term for the internet sites and applications we use daily to share content. No single morning starts without scrolling through the feeds of Instagram, WhatsApp, or Facebook. Such is the influence it has on each one of us. Social media has been a great boon, helping many explore their creativity, reconnect with old friends, stay entertained, and learn new things. It has become an integral part of our lives.
While social media is undoubtedly helpful, its downsides also need to be addressed. The deeper one delves into social media—seeing updates on what others ate, the places they visited, the appearance of influencers, or the lifestyle of actors and actresses—the more it leads to self-comparison and self-doubt. The idealization of life as portrayed on social media creates a sense of inadequacy and anxiety, particularly among millennials and Gen Z.
We live in a society where our actions are constantly observed. Every place we visit, every meal we have, and every moment we spend with loved ones is posted on social media to stay active and visible to the world. However, we are also victims of comparison. Instead of enjoying the quality time spent with loved ones or appreciating the places we visit, we constantly compare ourselves and our achievements to those of social media influencers.
Today's generation is more free, self-reliant, and independent compared to their parents. They hold their own views on every aspect of their lives, from marriage and education to jobs, careers, and finances. However, they are often more cash-strapped than their parents. By the middle of the month, many find themselves financially strained—not because they aren't earning, but because they are spending beyond their means. The overuse of credit cards to cover expenses, the urge to spend on extravagance, and the constant desire to stay in the limelight or emulate the lifestyles of social media influencers are the primary reasons for this.
Money Dysmorphia, though not an actual diagnosis, has been circulating on the internet for some time. Money Dysmorphia refers to a state of mind where a person feels irrationally insecure about their finances, even when they are financially stable. According to Lindsay Bryan-Podvin, a certified Financial Therapist, “Money Dysmorphia is the distance between a person’s perceived financial status and their actual financial reality.” This distorted view of one’s finances often leads millennials and Gen Z to make ill-informed and dangerous decisions. A recent study reveals that nearly half of Millennials and Gen Z are affected by this condition.
The study sheds light on the extent to which young people are fixated on the lifestyles of influencers they follow on social media platforms and how they feel compelled to project an image of wealth, often beyond their means. The pressure to uphold this social status is creating serious mental health issues, affecting not only individuals but society as a whole. With the advent of social media, we are more aware than ever of others' spending habits.
Money Dysmorphia can be classified into three categories: Earning Obsession, Money Hoarding, and Adverse Shopping.
Earning Obsession refers to people who are wealthy but have a constant urge to earn more because they feel they are poor.
Money Hoarding describes those who have money but refuse to spend it.
Adverse Shopping is when, despite financial constraints, you’re compelled to buy expensive and unaffordable items.
While the first and second categories may seem harmless, the consequences of the third category are not limited to the individual affected by the disorder. The impacts are far-reaching. Constantly feeling the urge to match the financial status of someone you have no real relationship with, just because you saw it on social media, can lead to the adoption of a violent and criminal mindset.
One of the most adverse effects of Money Dysmorphia is the rise of Money Mules. A Money Mule is someone who transfers or moves illegally acquired money on behalf of someone else. Innocent victims are duped by fraudsters into laundering illegal money via their bank accounts, making it difficult to trace the source. Recent studies show that the targets of Money Mules are mostly youngsters (Millennials or Gen Z) who are more vulnerable, naïve, and strapped for cash, compared to older generations, due to the extravagant lifestyles they are trying to imitate. The allure of an opulent lifestyle, often showcased on platforms like Instagram, has played a crucial role in shaping the financial aspirations of the younger generation. Attracted by the financial gains or rewards offered by fraudsters, many are drawn into illegal activities. A significant portion of accounts used for Money Mule activities are opened in the names of college or school students eager to earn money through shortcuts and interested in living a lifestyle far above their financial stability. Unaware of the implications and repercussions of their involvement, they become prey to such fraudsters. Recently, cases of heinous crimes such as drug trafficking, smuggling, kidnapping, and murder have also been associated with young people willing to do anything to maintain their social status, indicating the seriousness of this disorder among the public.
Overcoming Money Dysmorphia is not easy, but it is also not impossible. By taking proper measures, such as monitoring one's finances, setting realistic goals, and creating a practical financial plan, individuals can overcome this disorder. Recognizing the problem is the first step to managing it. By doing so, individuals can identify what leads to their disordered relationship with money. Fear and misconceptions can be reduced by educating young people about financial matters. Creating a monthly budget can help manage Money Dysmorphia by providing a clear overview of income and expenses. Most importantly, reducing screen time and controlling social media presence can decrease the urge to overspend, as the fixation on others' lifestyles on social media is a primary cause of Money Dysmorphia.
A new concept called "loud budgeting" has been introduced by TikToker, comedian, and writer Mr. Lukas Battle. Although initially presented as a joke in one of his TikTok videos, it has sparked a new financial trend. Loud budgeting encourages individuals to be vocal and proud about achieving their financial goals. It stands for being unapologetic about personal finances, taking a proactive and transparent approach to managing money. In a workplace setting, loud budgeting involves collaborating as a group to develop financial goals and a shared spending plan, seeking and providing input on financial decisions, and openly sharing financial information. It can positively impact the financial transparency of an organization.
Money Dysmorphia can be overcome through collective efforts. Let us ensure that future generations are not trapped in debt or become pawns in the hands of fraudsters.
