According to a recent 2024 ABC News/Ipsos survey, 79% of young Americans feel the American dream is no longer achievable. An overwhelming cycle of financial stress has ensnared many, leading to a pervasive sense of scarcity and despair regarding their financial futures. In the last four years, inflation has surged by approximately 30% to 40% in several sectors, while most salaries have failed to keep pace. With mortgage rates averaging between 6% and 8%, the dream of home ownership—a hallmark of the American dream—seems unattainable for many in the younger generation. Moreover, rising debt levels coupled with dwindling retirement savings exacerbate the situation, allowing the ‘money demons’—the persistent subconscious voices—to torment young Americans, creating feelings of inadequacy and perpetual shortage. Here’s a way to confront these challenges.
Spotting your money demons
Money carries weight because we attribute value to it. It has the potential to incite jealousy, resentment, anger, mistrust, and envy between associates, friends, and family. While it is easy to assume we are rational regarding money matters, the truth is that our relationship with money often reveals itself in less than flattering ways. Negative emotions associated with finance morph into one’s money demons, which, if not addressed, can undermine your mental peace. Money demons are relentless and formidable, capable of wreaking havoc.
Anxiety over failure and fear of missing opportunities
Young Americans grapple with two significant money demons: fear of failure and fear of missing out. Influenced by familial upbringing, economic conditions, or various factors, many adopt a bleak mindset of “I’m destined to struggle” or “I’m a casualty of my environment.” This fear of failure becomes an absence of hope, encased in a shell of apathy and resignation.
When the first cohort of Gen Z (born 1997–2012) began to enter the workforce in 2019, they were filled with optimism—the economic outlook was favorable, and unemployment rates were low. But the storyline of 2020 is one familiar to many, shattering that optimism with fear and doubt. Aspirations for effortless job placement, stable salaries, and career advancement dissipated as college graduations were canceled and job opportunities dwindled.
The second money demon, fear of missing out, distorts the ambitions of young adults through the allure of unrealistic quick-rich schemes that require minimal effort. Consider a viral video that promises fortune from selecting the right stock on a gamified trading platform or striking gold with the latest cryptocurrency trend. Though these fantasies may seem thrilling, they are just as reliable as tossing coins into a fountain or betting at a casino.
The truth lies somewhere in between. True wealth is not a stroke of extraordinary luck but a result of innovation, perseverance, and determination. It begins with cultivating a fresh belief system regarding money and the possibilities it holds. How can we initiate this change?
Posing the right inquiries
The quality of your life will significantly depend on the questions you pose to yourself. Escaping your money demons requires a willingness to shift your mindset and embrace empowering beliefs to combat them. A guardian belief serves as a counter to your money demon, endowing you with the strength to move forward. You can detach from past attachments by confronting the mistakes and failures you’ve faced.
Rather than succumbing to thoughts like “I’m supposed to be broke” or “How can I quickly amass wealth with minimal effort?” ask yourself, “What steps can I take now to create the greatest value for myself and those around me?” You can transform your perspective on money by posing questions that lift you from your current situation.
The fundamental truth about money is this: Hard work is essential for earning it. However, what many overlook is that hard work must generate value to lead to real wealth. Efforts that come too easily often lack genuine joy or fulfillment. Most successful entrepreneurs will share stories of starting with nothing and seizing every opportunity to labor, realize their dreams, and foster prosperity for others. Young Americans have a unique chance to channel their entrepreneurial drive to add value and shape their own version of the American dream.
Discovering purpose and embracing accountability
Frequently, money is misidentified as the ultimate aim and purpose of life. Nevertheless, no sum of money can furnish lasting satisfaction. Rather, having a clear purpose for your finances and life fosters fulfillment. Money should serve as a means to fulfill your purpose, not the end goal itself.
Your journey begins with your mindset. Whether you see the American dream as unattainable or achievable, you are correct in your thinking. Your worldview and language will directly influence your actions and the outcomes you experience. Each generation faces the choice of being a victim of its circumstances or innovating to lead an extraordinary life. The American dream is yours to shape, and you alone are responsible for defining and pursuing it. No one will hand it to you, and if they did, it would hold little value. Be the hero in your narrative, but remember, the responsibility to take action lies with you.
