Gen Z and Millennials turn to ‘doom spending’ amidst rising stress

Some say that a quarter of Americans report engaging in “doom spending” as a response to stress. I’m not sure about this. People self-soothe through eating, sleeping, drinking, or spending money. I’m sure glad we don’t have to call it “doom eating,” “doom drinking,” or “doom sleeping.” We GenZ and Millennials don’t need another “doom” on our plate pressed on us by the media—thank you very much! However, financial experts warn that excessive shopping sprees, termed “doom spending,” will not help in the long term. This behavior is driven by collective stress, which many feel is manageable only through spending. An October survey highlighted that over a quarter of Americans engage in doom spending due to concerns about inflation, the cost of living, foreign affairs, and the election. Younger generations are particularly at risk, with 37% of Gen Z and 39% of Millennials reporting this behavior. This trend is worrying. A third of Americans lack short-term savings, and 38% of Gen Z and Millennials believe it’s more challenging to build financial wealth than it was for their parents due to the economy. At least I say on this one — 39% of how many? Ten people? Come on, we’re smarter than that! Here is some advice from experts on curbing doom spending: Set Limits. Hanna Grichanik, a personal financial advisor, suggests that going cold turkey on personal spending during stressful times isn’t realistic. Instead, she recommends redeeming rewards, points, or coupons to offset costs. A measured shopping trip on a discount can gamify the experience and support long-term financial health. “This small hack can allow you to find ways to save while still enjoying something you crave,” Grichanik says. Establish Measurable Financial Goals

Coping with financial stress

Money remains a top stressor for Americans. Adopting practical, financially healthy habits, and saving money, even in small amounts, can make a difference. Angela Fontes, vice president of policy and research at Financial Health Network, suggests setting aside $10 a week. “Nothing happens overnight, but with consistency and timely goal, it can be effective,” Grichanik adds. Consulting experts to place money in high-yield savings accounts or contributing to a Roth IRA or 401K can also help manage spending.

Create a Roadblock to Spending

Grichanik recommends taking steps to make spending harder. For example, remove saved credit card information from your browsers or wallets to create a barrier to purchasing,” she advises. Lean on Anti-Stress Tools Having a list of stress-relief tools that don’t require spending money can be helpful. Connecting with friends, resetting your nervous system through meditation or exercise, and participating in no-cost community events like volunteering can lower stress and boost happiness. While retail therapy may bring temporary comfort, moderation is key. Relying on a range of healthy coping skills can ease stress without breaking the bank.