The term "doom spending," generally done by young people, is becoming a concern amidst the current difficult economic conditions. What does doom spending mean? Let's find out here!
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Doom spending is a term used in economics and consumer behavior to refer to people's tendency to spend excessively in response to uncertainty or anxiety. In short, doom spending is shopping or impulsively spending money.
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This phenomenon often occurs during crises, such as pandemics, economic recessions, or stressful social situations. Especially for the Millennial and Gen Z generations, many experts consider them to be the ones most trapped in this doom spending.
Why are Millennials and Gen Z Trapped in Doom Spending?
The Millennial generation (born between 1981-1996) and Gen Z (born 1997-2012) grew up in an uncertain economic situation. Millennials experienced a recession in 2008 when they entered the workforce, while Gen Z is facing the impact of the COVID-19 pandemic. This uncertainty makes them tend to look for ways to get temporary happiness through shopping.
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The influence of social media that Millennials and Gen Z often access also triggers exposure to a glamorous lifestyle, making them willing to spend their budget on things that are not important and not for urgent needs. But only for social recognition that they are also 'worthy' of a glamorous life and can follow existing trends.
Easy access to e-commerce platforms and online shopping applications also allows them to shop anytime and anywhere. This convenience can make shopping decisions impulsive and unplanned. Millennials and Gen Z often consider shopping as a form of self-care. In the context of increasingly important mental health, many feel that buying certain items can provide feelings of happiness and reduce stress, even if only temporarily.
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What is the Impact of Doom Spending on Millennials and Gen Z?
First, of course, financial problems. Unplanned shopping habits often lead to financial problems, including mounting debt. This can exacerbate the stress that is felt and create a negative cycle. Second, mental health, because although shopping can provide temporary happiness, doom spending can ultimately lead to regret or stress when the consequences of the spending begin to be felt.
By raising awareness about spending habits and adopting a more responsible approach, the younger generation can better manage their finances and find happiness more sustainably.
