Keeping up or breaking down? The money dysmorphia challenge

IN Partnership with

Desjardins’ experts on why financial stress runs deeper than the headlines − and how better tools can help

“FINANCIAL (or money) dysmorphia” − a term echoing body dysmorphic disorder − is gaining traction. Not a clinical diagnosis but a deep unease, the phenomenon is resonating with Canadians who find themselves in the grip of irrational financial insecurity − feeling behind, inadequate, or perpetually out of step with their peers, no matter what the numbers say. Constant exposure to idealized lifestyles on social media and anxiety-inducing economic news cycles can leave Canadians feeling financially uncertain. Charles Pépin, director of advice and governance, group benefits and retirement savings at Desjardins Insurance, has spent more than 20 years helping people untangle their complicated relationship with money. In his view, money dysmorphia is a distorted view of one’s financial situation, where individuals feel anxious or dissatisfied despite being financially stable. This can manifest as obsessive earning, money hoarding, or adverse shopping habits.

Desjardins Insurance offers a wide range of life and health insurance and savings and investment solutions through our extensive distribution networks. More than five million Canadians are counting on our solid expertise and our people-focused approach at every stage of their lives. Choosing Desjardins Insurance means choosing Desjardins Group, the largest co-operative financial group in North America.

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“Our financial planning service is comprehensive − it looks beyond just saving for retirement to include investment strategies, insurance, estate planning, and more”

Charles Pépin, Desjardins

What is money dysmorphia?

Published June 16, 2025

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“In a world where we’re constantly exposed to advertising and curated snapshots on social media, it’s easy to feel out of sync with others”

VÉronique D’Amours, Desjardins

Pépin says, “In today’s world, the comparison is relentless and turbocharged by social media. The impact on people’s financial well-being can be profound.”

While body dysmorphia is officially recognized in diagnostic manuals like the DSM-5, money dysmorphia currently remains an informal but increasingly relevant concept. According to Véronique D’Amours, senior financial empowerment support advisor at Desjardins, “By comparing oneself to others, financial dysmorphia leads us to see our actual situation as distorted, which can make us believe that we are financially behind others, less competent, or less wealthy.” In essence, financial dysmorphia describes a distorted perception of one’s financial health. People may feel uncertain about where they truly stand, often swinging between anxiety and aspiration. For some, this leads to excessive restraint − avoiding even reasonable expenses out of fear or perceived inadequacy. The challenge for financial planners, employers, and individuals is to help restore a more balanced view − one that acknowledges real financial pressures without magnifying them through comparison or misplaced fear. One of the most telling signs of money dysmorphia, as D’Amours notes, is the persistent feeling that one is falling behind − even when there is no objective reason to think so.

“In a world where we’re constantly exposed to advertising and curated snapshots on social media, it’s easy to feel out of sync with others,” she explains. “If I compare myself excessively and keep telling myself that my financial situation is worse than others’, and if these thoughts come up regularly − several times a day − it can lead to anxiety, even if my finances are actually sound and allow me to meet my goals.” This distorted self-assessment, fuelled by constant comparison, can create unnecessary stress and undermine confidence in one’s financial well-being. According to Pépin, another sign is living above one’s means, often without fully realizing it. “We see people making huge decisions, like buying a car or booking a luxury vacation on

credit, and doing so very lightly,” he explains. “These are emotional purchases, made not out of necessity but as a response to a sense of inadequacy or the urge to keep up with others.” Pépin adds that the phenomenon isn’t limited to obvious splurges. “It doesn’t always mean trading in your Toyota for a Lexus. Sometimes it’s subtler − maybe you’re booking your vacation and suddenly think, ‘Everyone else seems to be flying first class. Maybe I should pay for premium economy.’ And that’s insanely expensive for what it is, just a couple of inches more leg room and perks that make it hard to justify the price differential.”

The real cost: decreased productivity and long-term security

What makes money dysmorphia especially difficult to address is the wide reach of its effects. “This type of financial anxiety acts like a mirror,” Pépin observes. “When your perception is distorted, you may start making financial decisions based on emotion, not on facts or priorities.” D’Amours echoes this view, noting that our brains aren’t always rational when it comes to money. “Several studies, including one conducted by the Social Research and Demonstration Corp., show that these biases often have negative effects on financial decision-making, whether it involves saving, use of credit, or investing,” she explains. But the consequences don’t stop at investment decisions. “According to FP Canada’s 2025 Financial Stress Index, there’s a direct link between financial anxiety and workplace productivity,” Pépin points out. “We know employees spend a significant amount of time distracted by money worries, as per the National Payroll Institute, ‘The 16th Annual National Payroll Institute Survey of Working Canadians,’ 2024. Whether it’s trying to figure out how to ‘catch up’ or just doom-scrolling for the latest economic headlines. It’s a hidden drain on well-being and focus.”

So how do Canadians break the cycle of comparison, anxiety, and distorted financial thinking? Financial knowledge and judgment are key defences. “Financial knowledge, critical judgment, confidence in one’s own ability to make informed financial decisions, and the ability to seek reliable financial advice can protect us against feelings of financial insecurity and help us develop financial empowerment,” says D’Amours. Desjardins’ financial planners help members set realistic, obtainable goals via the classic SMART approach, calling for goals to be specific, measurable, achievable, relevant, and time bound. “That’s part of the core approach our planners use,” Pépin says. “Having the help from a financial planner to establish realistic, obtainable goals in a given timeline makes you better equipped to just hold steady − keep calm and carry on, as the coasters say.”

Tools and strategies for a healthier money mindset

Advocating for a mix of practical strategies and modern tools, Pépin and his team at Desjardins Insurance advise members to:

Create a financial plan: Setting specific, achievable goals grounds your decisions in reality, not emotion. Seek expert advice: Working with professionals − whether that’s a financial planner or an educator − can help you cut through the noise and focus on what matters to you.

Desjardins has built a suite of resources to make this easier. “Our financial planning service is comprehensive − it looks beyond just saving for retirement to include investment strategies, insurance, estate planning, and more,” Pépin says. “For people who want a digital-first approach, our On Target Retirement® tool is an easy way to test different savings scenarios, see the impact of changes, and set more realistic expectations. Their tools, Pépin says, are designed to help plan members stay focused on their own journey, rather than chasing someone else’s. “It’s about building confidence and autonomy − knowing your goals, making progress, and feeling empowered to make informed decisions.”

Encouraging members to become financially empowered

Financial empowerment is not an end in itself but something to strive for. Pépin urges employers and plan sponsors to play a more active role. “Employees often aren’t aware of the financial resources available to them. Regular communication, reminders about planning tools, and reviewing engagement data can make a real difference. “Reminding employees, ‘Hey, you have access to financial planning, you have access to our core website. If you go online, there are great things on it,’ really does make a difference. And enforcing that message is one way that sponsors can help their plan members.”

He notes that regular reviews with plan sponsors − annual, quarterly, or semi-annual, depending on the need − are another important step. “Plan governance reviews between a sponsor and their insurance provider are a great way for sponsors to become aware of certain stats about their program. Maybe not that many people are using the website or calling the financial planner. That’s where we can jump in and really bring some added value to their membership.” For Desjardins Insurance, confidence and autonomy are key. The insurer wants Canadians to feel empowered to make good decisions and not be thrown off course by every headline or social media post. Pépin sees the impact in his own work, specifically in terms of education. He credits Desjardins’ co-operative roots for its mission-driven approach. “We’re here to contribute to community well-being, not just individual wealth,” he says. “By equipping Canadians with education, tools, advice, and support, we’re helping to build stronger, more resilient communities − one financial plan at a time.” For plan members struggling with financial anxiety, it’s crucial to help them define personal milestones and checkpoints − measurable goals that align with their unique circumstances and values, rather than external benchmarks. This approach not only offers a clearer sense of progress but also ensures that financial planning remains grounded in what truly matters to each individual.

References “The link between financial confidence and financial outcomes among working-aged Canadians,” May 2016, Financial Consumer Agency of Canada. FP Canada™, “2025 Financial Stress Index” (March 18, 2025). National Payroll Institute, “The 16th Annual National Payroll Institute Survey of Working Canadians: An online survey of 1,500 working Canadians” (2024).

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Money dysmorphia stems from constantly comparing yourself to others, leading to a distorted sense of your own financial standing. Social media can amplify the feeling of financial insecurity. Though not clinical, it’s still emotionally taxing. Financial literacy helps build resilience.

Talking about money dysmorphia

Source: How Money Dysmorphia Can Hurt Your Mental Health and Finances. Lindsay Bryan-Podvin. https://www.verywellmind.com/money-dysmorphia-8713617

Why it hurts your finances

Heightened emotions can drive poor money choices. Planning can suffer due to distorted views. Impulse spending can replace strategy. When decisions are made to soothe anxiety or “keep up,” they’re rarely aligned with long-term goals It’s a confidence game: Without clarity and self-trust, financial autonomy can become harder to achieve − could make people more vulnerable to pressure and misinformation.