Get to know the Doom Spending behavior of Gen Z and Gen Y on a day when everything seems uncertain

In today’s uncertain world, many people turn to spending to relieve stress from their daily lives, especially those like Gen Z and Gen Y people, who have a habit called ‘Doom Spending’ or insane spending, aiming at buying happiness from luxury items and experiences, even if it leads them to long-term financial difficulties. In this article, ACU Pay will introduce everyone to the Doom spending of Gen Z and Gen Y people.

The Meaning of Doom Spending

Doom Spending is a way of spending too much money on luxury goods or services such as high-end clothing, luxury tourism, and expensive activities to heal the mind from anxiety and economic uncertainty. These problems exacerbate the stress caused by situations such as the COVID-19 pandemic and inflation that have been rising over the years.

Overview of spending behavior in Gen Z and Gen Y groups

According to Credit Karma, 35% of Gen Z people and 43% of Gen Y people admit that they have Doom Spending habits, which is a very high rate compared to the previous generation. In addition, a survey shows that 71% of people in this age group are concerned about their financial situation, causing them to start spending impulsively to relieve stress.

The Causes of Doom Spending

Stress from uncertain economic conditions, a sense of hopelessness in the future, and bad news from social media are all driving the younger generation to spend inappropriately. Ylva Baeckström, a financial expert, says mental instability makes them try to buy happiness in the short term, regardless of future impacts.

Dangers from Doom Spending

Although short-term spending on happiness can make them feel better, long-term unconscious spending can lead to debt problems and no savings for retirement or emergencies. Economists warn that this behavior can put younger generations in financial situations worse than their parent’s generation, which is a serious concern.

How to Correct Doom Spending Behavior

Making spending more complicated: Avoid using credit cards or digital payments that make spending too convenient. It is recommended to return to cash or have a clear budgeting system.
Expenditure tracking: Records daily spending to understand what items you have spent on and do they are needed or not.
Finding other activities to do: Find time to do activities that are not related to spending, such as exercising or spending time with family and friends to help reduce stress from everyday life.
Financial planning: Set clear savings goals and share savings before spending what you want.

‘Doom Spending’ is a reflection of the financial concerns of today’s generation. Spending to heal the mind can be a temporary response, but long-term effects can worsen their financial situation. Finding ways to adjust spending habits is essential to living a life happily in the future without worrying about financial difficulties that may arise in the future.

References from
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