Americans are self-soothing by shelling out cash. A recent study by Intuit Credit Karma found that 27 percent of Americans doom spend to cope with stress. Forty percent of people doom spend more now than they did a year ago. The numbers are even higher for millennials and Gen Zers, with 39 and 37 percent, respectively, admitting to doom spending.
“Doom spending describes the impulse to spend money on things to self-soothe against anxiety and stress,” Kimberly Palmer, a personal finance expert at NerdWallet, told HuffPost. “For example, if we are really stressed out about the election, we might splurge on takeout, new clothes and a plane ticket for vacation just to help boost our mood.”
According to Intuit Credit Karma, doom spending is largely due to the fact that many people are “chronically online.” That phenomenon applies to 70 percent of Gen Zers, 53 percent of whom said that seeing bad news online drives them to stress spend.
While 49 percent of Americans prioritize being online to stay up-to-date on world news, 34 percent know they’d spend less money if they logged off.
Sixty-three percent of Americans said that bad news, which is often related to the state of the world and the economy, gives them financial anxiety. Fifty-nine percent of Americans said that stress impacts how they spend their money. For Gen Zers and millennials those numbers are higher, at 47 percent and 42 percent, respectively.
Americans Feel Like They Deserve ‘a Little Treat’
As for why Americans opt to cope with stress by putting themselves in a precarious financial position, 36 percent of Americans—47 percent of Gen Z and 43 percent of millennials—said they can’t rationalize saving money due to feelings of uncertainty about the world and economy.
“Time and time again, we see people spending money to cope with their emotions and relieve stress, and while it might result in short-term relief, it can have long-term negative implications on their finances,” Courtney Alev, consumer financial advocate at Credit Karma, said. “Young consumers, who spend much of their time online and on social media are especially susceptible to the impact that doom scrolling can have on their wallets.”
Axios reported similar findings, noting that, while six in 10 Americans say they feel financially squeezed each month, millennials and Gen Zers agree it is better to treat themselves now rather than hold off for a future “that feels like it could change at any moment.” Most Americans also agree that they deserve to purchase things that make them happy “after surviving the last few years.”
“What you’re following and the messages that you are receiving online can make you feel worse, increase your anxiety, and make things feel more dire than they are,” Aja Evans, a financial therapist and author, told CNN. “When you’re in the midst of scrolling, you might think: ‘You know what? Things are just really bad. I’m going to feel better if I purchase.’”
“You literally need to go outside sometimes. Be in nature and just remind yourself that there is a world beyond the screen,” she added. “If you can afford to spend, go ahead. But if you find yourself consistently putting yourself over your budget or feeling uncomfortable, then that’s the time to shift your behavior. Recognize that you can get that dopamine hit from somewhere outside spending.”
Bola Sokunbi, a financial author, agreed, telling HuffPost, “It’s basically a vicious cycle― feeling anxious, spending to feel better, feeling anxious about spending … and around it goes.”
The post People Are ‘Doom Spending’ to Deal With the State of the World appeared first on VICE.
The post People Are ‘Doom Spending’ to Deal With the State of the World appeared first on VICE.
