Why is the definition of "racist" misused so much in conversation?

Are you annoyed by this as well? I often hear people telling others not to be "racist" when what they actually mean is "prejudiced". It disturbs me that a lot of kids don't know the difference. I think it's because we live in a society now where the media attributes every last negative thing going on in the world to racism. Don't get me wrong - racism regrettably exists. However, because of its widespread and often erroneous usage, the very definition of the word has morphed into something of a monster in every day conversation. Suddenly if you disagree with a certain group of people and their belief system you're a racist, even if it hasn't a single thing to do with the issue of race.