40% of Millenials said it’s important to have visible signs of wealth, whether it be purchasing a fancy car, clothing, or place to live

Millennials are grappling with unique financial challenges, including skyrocketing housing costs, looming student loan payments, and mounting credit card debt. Yet, despite these struggles, they are the most money-obsessed generation—and the most eager to flaunt their perceived financial success.

A recent Wells Fargo study revealed that 59% of affluent millennials believe it’s important to “look or appear” financially successful to others, even as more than half admit they’ve been “greatly affected” by the cost-of-living crisis. This phenomenon, often described as “money dysmorphia” by Intuit Credit Karma, reflects an obsession with appearing wealthy, often at the expense of acknowledging one’s true financial situation.

Interestingly, the study focused on “affluent” millennials earning at least $250,000 annually, suggesting that even high-income individuals in this generation feel compelled to keep up appearances. Over 40% of respondents admitted that displaying visible signs of wealth—whether through luxury cars, designer clothing, or upscale housing—is important to them. By contrast, only 21% of Gen Xers, 8% of baby boomers, and 7% of the silent generation share this sentiment.

“Affluent millennials are working hard and achieving financial success,” said Emily Irwin, managing director of advice and planning at Wells Fargo, in an interview with Fortune. “However, they’re struggling with the pressure to maintain an external image that doesn’t align with their actual financial reality. For some, it’s a ‘fake it until you make it’ mindset.”

Even among the wealthiest millennials, financial anxiety is evident, with more than 40% relying on credit cards or loans to sustain their lifestyles, leading to significant debt accumulation. According to LendingTree, the national average credit card debt per holder in the fourth quarter of 2023 was $6,864, and millennials are among those facing the steepest challenges in paying off their balances.

“Millennials have experienced the largest increase in delinquency rates and now have rates noticeably higher than pre-pandemic levels,” New York Federal Reserve researchers noted during a press call in November 2023. “These increases are surprising, given the strong labor market and overall economy.”

The Role of Social Media in Millennial Spending

Social media plays a significant role in millennials’ spending habits, with advertisements and influencer-driven content creating constant pressure to spend. Whether through direct promotions or subtle nudges, millennials are frequently influenced to prioritize appearances, fueling their financial anxieties and the growing trend of “money dysmorphia.”