Americans are engaging in “doom spending” as a way to cope with anxiety about the future, but experts warn this habit can have serious financial consequences. Credit Karma found that 27% of Americans were doom spending before the election, with even higher rates among younger generations. Courtney Alev, a consumer financial advocate at Credit Karma, said, “It’s all too easy to bury our heads in the sand when we feel anxious or stressed, and the recent presidential election is affecting people.” She noted that targeted ads and online shopping make it easy to overspend quickly.
Financial advisors caution that doom spending can derail budgets and lead to debt. “It’s very easy for someone to fall into debt when impulse buying because they’re deviating from their budget,” said a Northwestern Mutual advisor. The author of Clever Girl Finance explained that doom spending often backfires: “You end up buying stuff you might not need, and then there’s the potential for buyer’s remorse or feeling guilty.
Coping with anxiety through spending
If it becomes a habit, it can lead to financial stress, precisely what you were trying to avoid in the first place.”
To avoid the doom spending trap, experts suggest taking a break from social media, finding accessible ways to boost your mood, like spending time outdoors or with loved ones, setting a clear budget, and putting barriers in place to prevent impulse buys. They also recommend channeling almost-spent money into savings instead.
One expert advised, “Pause before you spend. “When you feel like buying something, pause and ask if you really need it or if it’s just stress talking. Sometimes, just waiting a few hours helps.”
While allowing some “fun money” is okay, doom spending can quickly spiral out of control, especially with the holidays approaching.
Being mindful about spending and finding healthier ways to cope with anxiety can help protect financial stability during uncertain times.
