Bandung, Indonesia Sentinel — Gen Z and millennials are at greater risk of financial instability and becoming poorer than previous generations due to the rising trend of “doom spending,” a pattern of reckless spending driven by stress and anxiety. According to Psychology Today, doom spending occurs when individuals make impulsive purchases as a way to escape feelings of uncertainty about the economy and their future.
As reported by Bloomberg, doom spending is a response to broader external pressures like economic instability, global crises, and wealth inequality. This phenomenon differs from “retail therapy,” where people shop to soothe personal problems like relationship or career issues. Doom spending is triggered by external factors such as economic crises, international conflict, and a widening gap between the ultra-wealthy and the general population.
The rise of smartphones and easy access to global news has exacerbated this trend. Constant exposure to negative information about economic downturns, wars, and environmental crises leaves many young people feeling like they are living in a perpetual state of crisis. Young people are chronically online and feel like they’re constantly receiving bad news, leading to a sense of impending doom.
Ylva Baeckström, a senior finance lecturer at King’s Business School, describes doom spending as a dangerous and fatalistic practice. “Young people are translating their feelings of anxiety into bad spending habits,” Baeckström explained.
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This troubling behavior has led some experts to predict that Gen Z and millennials could end up poorer than their parents. “This generation may not achieve what their parents did,” Baeckström warned.
This forecast is supported by a financial survey conducted by CNBC and SurveyMonkey, which found that only 36.5% of adults feel better off financially than their parents, while 42.8% believe their financial situation is worse. A separate November 2023 survey by Intuit Credit Karma revealed that 96% of Americans are worried about the economy, with more than a quarter spending money to cope with stress.
Amid this uncertainty, many young people have adopted a “live for the moment” mentality, choosing to spend on luxury items rather than save for long-term goals they feel are increasingly out of reach due to economic conditions.
(Raidi/Agung)
