Recent data from a 2024 ABC News/Ipsos poll shows 79% of young Americans believe the American dream is dead. There is a destructive cycle of stress and anxiety around money, leaving many trapped in a mindset of scarcity and hopelessness for a better financial outcome. Inflation over the last four years has increased by 30% – 40% percent in some sectors, and most salaries can’t keep pace. With the average mortgage interest rate hovering between 6% – 8%, home ownership, a quintessential mark of the American dream in years past, feels largely out of reach for many young Americans. Add to that increasing debt and decreasing retirement savings, and suddenly, and without prevail, the money demons—the underlying voice of the subconscious—are actively tormenting the minds of young Americans with thoughts of never having enough. Here’s how we can address these issues.
Identifying your money demons
Money holds power because we assign it value. It can create jealousy, resentment, anger, mistrust and envy between business partners, friends and loved ones. We all want to believe that we are rational when it comes to money, but the reality is, your relationship with money can and will show up in many unflattering ways. Your negative feelings toward money become your money demons, and if left unchecked, can destroy your peace of mind. Money demons are powerful and patient and have the potential to cause complete destruction.
Fear of failure and fear of missing out
There are two types of money demons plaguing young Americans: the fear of not making it and the fear of missing out. Due to upbringing, economic circumstances or a myriad of other factors, many Americans settle into a mindset of “I’m doomed to be poor” or “I am a victim of my circumstances.” The fear of not making it is a loss of hope, guarded by apathy and acceptance.
In 2019, the first group of Gen Z (born 1997–2012) to enter the workforce were approaching an optimistic outlook—the economy was bright, and unemployment was low—but 2020 is a story known all too well, and that hopefulness was soon destroyed by fear and uncertainty. Dreams of easy job placement, salary certainty and climbing the corporate ladder vanished as college graduation ceremonies were canceled and job postings dwindled.
The latter money demon, the fear of missing out, is distorting the dreams of young Americans through a grandiose and unrealistic fantasy of getting rich quick with minimal effort. Take, for example, a viral video about picking the right stock on a gamified investing platform or striking it rich through the latest and greatest cryptocurrency hype. While this fantasy may sound exciting, it is no more a sure thing than throwing money in a wishing well or gambling in Las Vegas.
The reality is that the truth is somewhere in the middle. Wealth creation is not a sudden stroke of good luck but is attainable through innovation, hard work and resilience. It starts by creating a new belief system around money and what is possible. How do we accomplish this?
Ask the right questions
Your life will be, in no small way, a function of the questions you ask yourself. You can escape your money demons, but you have to be willing to change your mindset and create guardian beliefs to counteract them. A guardian belief is a counteractive belief against your money demon that offers you the power to move forward. You can sever your attachment to the past by confronting the mistakes and breakdowns you’ve experienced.
Instead of succumbing to the money demon of “I’m doomed to be poor” or “How can I get rich quick doing the least amount of work?” ask yourself, “What can I do now to create the most value for myself and others?” You can shift your mindset around money by asking questions that propel you forward and upward from your current circumstances.
The basic law of money is this: You must work hard to earn money. But what people often miss is that hard work itself must produce value to yield true wealth. Anything too easy cannot bring a sense of joy or fulfillment in life. Most successful entrepreneurs will tell you they started from nothing but took every opportunity they saw to work hard, achieve their dreams and create wealth and prosperity for others. Young Americans have a unique opportunity to leverage their entrepreneurial spirit to add value to the world and make their American dream what they want it to be.
Finding purpose and taking responsibility
All too often money is mistakenly identified as the ultimate goal and purpose in life. Yet, no amount of money can result in lasting fulfillment… Instead, having a purpose for your money and for your life can create fulfillment. Money should be a tool for living your purpose, not the goal.
Success begins with your mindset. Whether you believe the American dream is out of reach or attainable, you are correct. Worldviews and words will directly correspond to the actions you take and the outcomes you achieve. Every generation faces the decision to either be a victim of its circumstances or innovate and create an extraordinary life. The American dream is yours to create, and only you are responsible for defining and achieving it. No one is going to give it to you, and if they did, it wouldn’t hold any meaning anyway. You can be the hero of your own story, but it is up to you to take action.
Mark Matson is the author of Experiencing the American Dream. Matson is the CEO and founder of Matson Money and an innovator in the fields of investing science and financial education.
Photo by Gorodenkoff/Courtesy of Shutterstock
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