Doom spending: Dire outlook pushes Americans to shop

Shopping as a coping mechanism for anxiety is a common practice among Americans, especially during times of political or economic uncertainty. Kelsea Palm, a senior at Wheaton College, found herself impulse-buying a purse the weekend before the presidential election to ease her stress. This trend, known as “doom spending,” is on the rise among Gen Z and millennial consumers who seek temporary relief from their worries through retail therapy.

Experts warn that while doom spending may provide a quick fix, it can have detrimental effects on long-term financial health. Courtney Alev, a consumer financial advocate at Credit Karma, notes that many Americans struggle to save money due to feelings of economic uncertainty and pessimism. The current state of the economy, despite positive indicators like low unemployment and inflation rates, leaves many consumers feeling financially strained.

In addition to economic factors, internet habits also play a significant role in driving doom spending, particularly among younger consumers. The constant barrage of negative news and influencer culture online can lead to increased anxiety and a greater temptation to make impulse purchases. Aja Evans, a financial therapist, emphasizes the importance of self-awareness and unplugging from online media to curb destructive financial behaviors.

The recent presidential election has further fueled doom spending, with consumers reacting to the outcome based on their political affiliations. A study by the Brookings Institution found that economic sentiment often aligns with the views of the incumbent party. Regardless of the election results, Alev anticipates a surge in spending as individuals seek to cope with their emotions or celebrate their preferred outcome.

To combat doom spending, Evans suggests engaging in alternative coping strategies such as going for a walk, calling a friend, or taking up a new hobby. Recognizing the underlying reasons for impulsive spending and finding healthier ways to address anxiety can help individuals regain control over their finances. Ultimately, finding ways to seek fulfillment and happiness outside of material purchases is key to breaking the cycle of doom spending.