Gen Z: 3 Signs That Show Your Friends Your Lifestyle Outpaces Your Paycheck
If you’re Gen Z and like to flaunt your lifestyle on social media, know that your friends are judging you — especially if they know how much you earn.
Even if you keep your finances under wraps and avoid the murky territory of money discussions, there are some telling ways you’re exceeding your monthly income.
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“It can be difficult to spot friends who go overboard,” said Kevin Huffman, owner of Kriminil Trading.
He said examples include constant buying of clothes, fancy appliances or luxury vacations with no tangible income. He added, “97.5% of Gen Z consider social media as their first-go-to shopping source and this shows how much social media is shaping the way they live their lives.
“This pressure can be financially exhausting if friends depend on secret funding such as family to keep them looking good.”
Below are the top signs that signal to your friends that your lifestyle outpaces your paycheck.
You Portray a Luxurious Lifestyle on Social Media
Social media is likely the biggest culprit.
“Young adults, specifically Gen Zers, are often tempted to keep up with their peers and portray a luxurious lifestyle on social media,” said Max Avery, a chief business development officer at Syndicately.
He said this, in the long run, can lead to financial trouble and reliance on others for funding. Kevin Shahnazari, founder and CEO of FinlyWealth, agreed.
“Their social media shows frequent high-end restaurant visits and luxury shopping sprees, yet their job title and experience level don’t match that spending power,” he noted.
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You Often Mention Financial Help From Family
Using phrases like “my parents helped me invest” or “it was a gift” when discussing major purchases is a big sign, said Shahnazari.
“From my experience guiding young clients through financial planning, I’ve seen how outside financial support can mask the real challenges of budgeting and saving.”
Overspending and Racking Up Credit Card Debt
“I believe consistently overspending and racking up credit card debt is one of the biggest financial mistakes a person can make,” Avery remarked.
He said it’s important to remember that appearances can be deceiving.
“Just because someone seems to have it all on social media, doesn’t mean they are financially stable,” he continued. “It’s important to focus on your own financial goals and not compare yourself to others.”
Additionally, Avery explained it’s really important to be aware of our spending habits and make sure we are not living beyond our means. Shahnazari noted the same.
“One client admitted she felt pressured to keep up with friends who had family wealth, leading to credit card debt as she tried matching their lifestyle,” Shahnazari said.
“After we created a realistic budget based on her actual income, she found genuine financial independence and confidence.”
Easy-To-Follow Tips for Gen Zers From Experts
“Having financial independence is essential to security and mental peace of mind in the long run,” said Huffman. Here are some tips he recommended.
Keep track of your income and expenses to understand where your money is going.
Have achievable priorities and establish a budget that isn’t driven by wants but rather needs.
Think about earning extra cash through a side hustle or freelancing.
But most importantly, be honest with friends. Talk openly about financial intentions and struggles, and stop equating yourself with fake internet wealth stories.
“Remember, financial journeys are personal,” Huffman added. “Celebrate one another’s accomplishments and work together toward a financially stable future.”
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This article originally appeared on GOBankingRates.com: Gen Z: 3 Signs That Show Your Friends Your Lifestyle Outpaces Your Paycheck
