Full Article Link: Investopedia – Why 1 in 5 Young Adults Trust in “Fake It Till You Make It”
Quote from Stephan Shipe
“I always tell clients that money just amplifies behavior. If you haven’t learned how to manage cash flow, save, and spend intentionally before you have money, those issues don’t go away. They get bigger.”
—tephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- The Allure of “Fake It Till You Make It” Is Real—But Risky
One in five Gen Zers and millennials believe faking confidence is the key to success. The problem arises when this mindset leads to financial overreach—spending beyond your means to appear successful, rather than building real capability and security. - Overspending to Impress Can Spiral Fast
Experts warn that pretending to have financial success can lead to lifestyle inflation, credit card debt, and fragile financial foundations. As Dr. Shipe points out, if core habits like saving and budgeting aren’t in place, having more money won’t fix the issue—it will magnify it. - Start Small, Build Real Confidence
Shipe encourages clients to grow confidence through action:- Automate savings
- Pay off high-interest debt
- Track spending and income
These foundational habits help you feel in control and reduce the perceived need to “fake it.”
- Financial Education Builds Real Power
Most people aren’t taught how to budget or save—and that’s okay. The article outlines essential first steps like:- Defining personal goals
- Opening a savings account
- Building an emergency fund
- Creating a budget (even with basic tools or apps)
- Distinguishing “must-haves” from “nice-to-haves”
- Debt Reduction Must Be Intentional
The first step is to stop accumulating more debt. Then, apply any surplus cash to existing balances. This approach lays the groundwork for stability and future investment—rather than chasing appearances with borrowed funds. - Real Confidence Comes From Real Progress
The story of Elizabeth Holmes is a cautionary tale: faking expertise without substance can lead to collapse. On the other hand, showing up, putting in the work, and achieving tangible results is what builds confidence that lasts.