Which Generations Are More Vulnerable to Doom Spending? Here’s How To Stop It
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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You’ve heard of doom scrolling: flipping through the constantly available stream of bad news that social media and devices make accessible 24/7. But have you heard of “doom spending“? This phenomenon appears to affect younger generations, like millennials and Gen Z, the most — perhaps because they are the first generations to really grow up fully online, according to McKinsey.
Because everything might seem “bad,” people justify making unnecessary, even foolish, expenditures because they may feel hopeless about the future, thus dubbed “doom spending.”
Similar to “retail therapy,” any kind of shopping you do from an emotional place without putting logic into place is likely to get you into trouble. Financial experts explained how to curb this tendency.
Instant Gratification and Spending Access
While “emotional spending” is not a new phenomenon, Leslie Tayne, a debt relief attorney with the Tayne Law Group, agreed that social media has made it easier than ever to make impulse purchases in several ways.
“Not only are ads seamlessly integrated into many social platforms, but they’re highly targeted to the interests and spending history of users. Plus, users often have their payment information saved in their phones and apps, making it all too easy to hit buy without taking time to think through a purchase,” she said.
While that instant gratification can make you feel better in the short term, it often leads to regret later on when you need the funds you wasted.
A Holdover From the Early Pandemic Days
The recent surge in doom spending may well have been brought on by the pandemic, according to Richard Barrington, a financial analyst for Credit Sesame.
“Obviously, during the pandemic there was terrible news every day. Then the government sent out a series of checks to people, regardless of whether they’d been affected financially. This gave people the means to spend as a diversion.”
While those checks have long since ended, the tendency to seek diversion may not have. “When debt becomes unmanageable, it only causes further financial and psychological harm. So doom spending can become a self-fulfilling prophecy,” Barrington added.
Create Healthy Diversions
Barrington recommended you try to thwart the cycle by giving yourself a reality check.
“Overspending and going into debt aren’t going to solve your problems. They’re only going to pile on additional problems. Think ahead — how are you going to feel when those bills come due?”
Then, he suggested thinking about diversions you enjoy that don’t cause harm. “It may be working out, seeing a movie, listening to music, watching sports, getting together with friends, etc. If you can substitute a less harmful activity for doom spending, you can leave yourself with fewer problems tomorrow.”
Institute a 24-Hour Discretionary Rule
You might need a more practical approach, however, to curb this spending. Tayne recommended instituting a 24-hour rule for discretionary spending.
“If you see something you want, bookmark it and come back to it after a full day. You can go ahead and make the purchase if you’re still interested after 24 hours, but in many cases, the emotions driving that desire to buy have dissipated and you may no longer wish to go through with the purchase,” she said.
Remove Saved Payment Methods
If you struggle with impulse spending, it’s also a good idea to remove your saved payment methods from websites and apps, Tayne suggested.
“Even those few moments it takes to stop and find your debit or credit card and enter the information before checking out can be enough to help you slow down and rethink whether you really need the item.”
Go On an Unfollowing Spree
If you find your spending is truly emotionally connected for you, review the accounts you follow and consider unfollowing those that are triggering, Tayne recommended.
“This can help reduce your exposure to influencers and brands that encourage emotional spending. You can also download tools like AdBlock, which minimize the number of ads you see online.”
Consider Other Ways To Get That Dopamine Hit
“Often, the emotional distress that comes with overspending or making impulse purchases far outweighs the hit of dopamine you initially get from the purchase,” Tayne said. Consider looking into a financial wellness group or forums online instead. These can help you stay motivated to keep your spending in check and provide some help with accountability.
Most importantly, to change any bad habit, you first need to bring attention to it. Start by noticing when and how you overspend and see if it’s connected to negative emotions.
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