Key Points

  • Social media has put a new spin on keeping up with the Joneses.
  • Exposure to glorified lifestyles online has left many people, especially young adults, feeling financially inadequate, even if they’re doing relatively well, reports show.

Overwhelming evidence suggests social media has a negative effect on self-esteem.

That’s not only true for how people feel about their appearance and social status, but also their financial well-being and economic standing.

A new term, “money dysmorphia,” aims to describe the distorted view of one’s finances that nearly one-third, or 29%, of Americans say they now experience, according to a recent report by Credit Karma, often from comparing their financial situation to others’ and feeling inadequate.