‘Doom spending’ is how everyone is dealing with stress: ‘Future is not guaranteed’
Amid the dark and stormy financial crisis, Gen Z and millennials are making it rain!
Splurging feels better than stressing — at least, that seems to be the collective stance of 20- and 30-somethings in the US, who’ve recently taken to “doom spending” their monies on luxury trips, costly escapades and impulsive delights in an effort to cope with the ever-spiraling economy.
“When older people ask me how younger people are affording nice things… I tell them it’s because we can’t afford anything else,” Maria Melchor, 27, an NYC-based financial content creator explained to a TikTok audience of 1.1 million.
“Homeownership or starting a family is so out of reach,” continued the Yale graduate in the clip. “We’re using that down-payment money or kid money . . . to give our dogs the most enriched puppyhood they can have.”
Youngish advocates of carefree consumerism backed Melchor’s position, commenting: “My mother asking me when I’m gonna stop traveling and buy a house. I can’t afford a house but I can travel.”
“Future is not guaranteed — it’s crumbling before our eyes,” wrote a frittering fatalist. “Enjoying what we have while we can is the way to go.”
“We’re all doom spending,” agreed another.
And the cash-blowing trend is fast on the rise.
A November 2023 study commissioned by Intuit Credit Karma found that a staggering 96% of Americans are concerned about the current state of the economy. Nearly half (48%) of fearful folks say not having enough money to afford necessities such as food, clothing and rent worries them the most.
Owing to mounting anxieties, over one-quarter (27%) of the pessimists — namely Gen Zs and millennials — “doom spend” to reduce the stress of inflation, the high cost of living and unaffordable housing.
A Prosperity Index report by Intuit also determined that 73% of Gen Zers would rather live in the moment than scrimp and save for the bleak future.
And a record 200 million shoppers hit the malls and scrolled for sales between Black Friday and Cyber Monday last month, according to the National Retail Federation. The NRF also noted that holiday spending is expected to reach record levels this season, totaling up to a whopping $966.6 billion.
Courtney Alev, a consumer financial advocate at Credit Karma, said, “Much like doom scrolling, we’re seeing people mindlessly shop to soothe concerns about the economy and foreign affairs, which could take a toll on their financial well-being.”
The financial management company’s recent study also determined that almost one-third (32%) of the hedonists have taken on more debt in the last six months amid increased spending.
“Of [those] with debt, a quarter estimate they currently hold more than $10,000 in debt — a significant amount, especially amid record-high interest rates,” said Credit Karma researchers, adding that doom spending may also impact savings rate.
“Within the last six months, nearly half of Americans (47%) say the amount of money they’re saving has gone down,” said the authors. “Right now, more than half of Americans (52%) estimate they have less than $2,000 in savings or none at all.”
And the shocking findings are right on the money.
In October, Sarah Bartlett, a 37-year-old confessed shopaholic, copped to going into over $14,000 of debt due to extravagant purchases made to boost her likability on Instagram.
Social media influencers like Kat Crittenden, from California, have also gone viral for urging fellow pleasure-seekers to “just book the flight” to exotic destinations rather than fret over their crushing finances.
However, Alev said there’s hope for spendthrifts wanting to rehabilitate their squandering ways.
“If you’re feeling stressed, you’re not alone — there are things you can do to get back on track,” she assured.
“Start by doing an assessment of your finances to understand how much money you have coming in and out each month, as well as how much debt you owe,” Alev encouraged. “This will help you make a plan for how you’re going to spend your money moving forward.”
The expert also advised the wannabe budget-conscious against swiping.
“To get in the habit of better spending, consider using cash instead of cards until you get your spending in check,” she said. “That way, you can limit your chances of overspending.”
“Also, if your card information is stored online,” added Alev, “you might consider deleting stored card information through your browser to make shopping online less frictionless.”
