Why the current generation is going broke

Social media is constantly evolving alongside the standard of living. Kids as young as 13-16 are constantly scrolling on their phones and running across content from their favorite celebrities and influencers, who display their flashy lifestyle and resources. These materials aren’t attainable to the average person which leaves the audience feeling inadequate. What exactly is wrong with flashing a lifestyle that YOU worked hard to attain? We shouldn’t believe everything we, but tell that to an impressionable teen or 21 year old college student working a minimum wage job. 

It’s important to highlight that lack of financial understanding is a contributing factor in the financial dilemma. According to a choosefifoundatio.org article, 1 in 5 teens lack a basic foundation to build on financial literacy, 46% don’t know what a 401k is, and 32% don’t even know the difference between a credit or debit card. Understanding savings and bank accounts, credit cards and bank loans are key contributors to having a successful adult life, yet there’s an issue currently being ignored and that’s flex culture – the impact social media is having on young minds and their relationship with money. 

A question that resurfaces in this discussion is who exactly is responsible and to what degree are they accountable for the lack of financial literacy in youths today? The parents, teachers, the education system, or media? In 2021, 36% of Gen Z adults scored 51%-100% on a financial literacy test. Whereas 48% of millennial adults, 48% of Gen X adults and 59% of baby boomer adults, according to a http://www.annuity.org article. The schools believe parents are educating their children and the parents think the schools are educating their children;, now it’s clearer to see where the discrepancies come into play. A lack of communication and leadership in all environments has set youths up for a life of hardship. 

Americans pay an average of $577 in late fees, overdrafts, and fraud-related charges and it’s rooted negligence of educating ourselves earlier on. When social media is doing the job of a parent/teacher and pressuring kids to take out personal loans for a new wardrobe instead of investing in skills, then we as a society have to raise awareness and take accountability.