Burdened by skyrocketing housing costs, looming student loan repayments, and growing credit card debt, millennials are navigating financial challenges unlike any previous generation. Yet, despite these struggles, they remain the generation most fixated on money—and eager to display it.
More than half of affluent millennials say they’ve been “greatly affected” by the ongoing cost-of-living crisis, according to a recent Wells Fargo study. However, 59% also admit that it’s important to “look or appear” financially successful to others.
This reflects a growing trend of “money dysmorphia,” a term coined by Intuit Credit Karma, where people become so obsessed with wealth that they lose sight of their actual financial reality.
Notably, this study focused on affluent millennials—those earning at least $250,000 a year—suggesting that even high earners feel pressure to keep up appearances. Among the 1,000 respondents, more than 40% said having visible signs of wealth—such as luxury cars, designer clothing, or expensive homes—was important. By comparison, just 21% of Gen Xers, 8% of baby boomers, and 7% of the silent generation felt the same way.
"Affluent millennials are working hard and achieving financial success," said Emily Irwin, managing director of advice and planning at Wells Fargo. "Yet they’re struggling with the pressure to project an image that may not align with their actual financial situation. For some, it's even a 'fake it until you make it' mindset."
Even some of the wealthiest millennials are caught in the money dysmorphia trap—with over 40% relying on credit cards or loans to sustain their lifestyle, all while accumulating debt, according to Wells Fargo.
The national average credit card debt in Q4 2023 stood at $6,864, per LendingTree. Millennials, in particular, are among the most burdened by unpaid balances.
"Millennials have seen the largest spike in delinquency rates, now exceeding pre-pandemic levels," researchers from the New York Federal Reserve noted in a November 2023 press call. "Given the strong labor market and overall economy, these rising delinquencies are somewhat unexpected."
Yet, given the pervasive influence of social media, it’s not so surprising that millennials spend as much as they do. Whether through targeted ads, influencer culture, or subtle nudges, millennials are constantly exposed to aspirational lifestyles, fueling anxiety around wealth and spending.
The financial challenges are real—but for many millennials, so is the pressure to look successful, even if it means racking up debt to do so.
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