Affluent Millennials and Their Financial Exaggeration

Millennials, the generation born between 1981 and 1996, are often stereotyped as entitled, lazy, and irresponsible when it comes to money. However, not all millennials are struggling financially. Some of them are affluent, meaning they have above-average household income and investable assets. According to a survey by Wells Fargo, affluent millennials have an average household income of $216,000 and an average investable asset of $514,000. However, being affluent does not necessarily mean being financially secure or satisfied. In fact, many affluent millennials are more likely to exaggerate their finances to appear wealthier than they are, according to the same survey. This essay will explore the reasons and implications of this phenomenon.

One of the reasons why affluent millennials exaggerate their finances is the pressure to show their success and status. Affluent millennials grew up in a digital and connected world, where social media platforms such as Instagram and TikTok are prevalent. These platforms enable users to showcase their lifestyles, achievements, and possessions to a large audience. However, they also create a distorted and unrealistic image of what success and happiness look like, as users tend to post only the positive and glamorous aspects of their lives. Affluent millennials, who are often ambitious and competitive, may feel the need to keep up with these images and impress others with their wealth and consumption. According to the survey, 34% of affluent millennials admit to lying or exaggerating their finances to appear financially successful, compared to 20% of Gen Xers and 4% of baby boomers. Moreover, 29% of affluent millennials confess to buying items they cannot afford to impress others, while 51% of them say that people assume they are wealthier than they are.

Another reason why affluent millennials exaggerate their finances is the lack of financial literacy and confidence. Affluent millennials may have high income and assets, but they may not have the knowledge or skills to manage them effectively. According to the survey, only 39% of affluent millennials say they are very confident in their financial knowledge, compared to 55% of Gen Xers and 68% of baby boomers. Moreover, only 36% of affluent millennials say they have a financial plan, compared to 50% of Gen Xers and 60% of baby boomers. Affluent millennials may also have financial challenges that other generations do not face, such as high student debt, rising cost of living, and uncertain economic outlook. According to the survey, 40% of affluent millennials report having more debt than they would prefer, and 31% of them say they are financially insecure. Affluent millennials may exaggerate their finances to hide their financial difficulties and insecurities, or to compensate for their lack of financial education and guidance.

The implications of affluent millennials’ financial exaggeration are negative and harmful, both for themselves and for society. For themselves, exaggerating their finances may lead to overspending, debt accumulation, and savings depletion. According to the survey, 41% of affluent millennials admit to funding their lifestyles with credit cards or loans, and 50% of them do not pay off their credit card bills each month. This may result in high interest charges, lower credit scores, and reduced financial flexibility. Moreover, exaggerating their finances may prevent them from achieving their financial goals, such as saving for retirement, buying a home, or starting a family. According to the survey, only 54% of affluent millennials say they are on track to meet their financial goals, compared to 66% of Gen Xers and 72% of baby boomers. Furthermore, exaggerating their finances may…

https://www.msn.com/en-us/money/markets/fake-rich-affluent-millennials-are-more-likely-to-exaggerate-to-appear-wealthy-heres-what-experts-say-they-should-do-instead/ar-BB1hgniP

PREs1 and TiK4TaT Research Team, 2004