Why is ‘doomspending’ on the rise? | Sean Monahan
Summary
Doomspending is a new term for spending money carelessly without worrying about future financial problems. Many young people in the West, especially Generation Z and millennials, are spending more to cope with economic stress, as traditional saving plans no longer fit an inflation-heavy economy where big costs like housing have soared.Key Facts
- Doomspending means spending money irresponsibly because of worries about the future.
- A Credit Karma survey in fall 2024 found 27% of Americans doomspend to relieve stress.
- The number is higher among Gen Z (37%) and millennials (39%).
- The idea links back to past discussions about millennials’ spending habits after the 2008 recession.
- Inflation has made the dollar lose 30% value since Covid and much more since the 1990s.
- Consumer goods have gotten cheaper, but expensive items like housing, healthcare, and education cost a lot more.
- Young people now often spend instead of saving because saving seems less useful with rising costs and uncertain futures.
- Gen Z has experienced economic challenges like job losses from AI and hopes for support such as universal basic income (UBI).
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