Inflation, rising house prices and economic uncertainty have fueled the emergence of a new global phenomenon: “doomspending”. More and more young people are choosing to spend money on experiences and small pleasures, instead of saving for long-term goals that they find difficult or impossible to achieve.
Young people are more inclined to spend on experiences and socializing Photo credit: Shutterstock
The deadline “doomspending” has become increasingly popular in recent years and describes the tendency of some people to impulsively spend money to cope with anxiety about the future. According to a survey conducted by the company Credit Karma and cited by The Guardian, about 27% of Americans say they make such expenses to manage stress. The percentage rises to 37% among Gen Z and 39% among millennials.
Who is to blame that young people don’t save anymore?
In a recent analysis, journalist Sean Monahan recalls the controversies of a decade ago about the famous “avocado toast”when millennials were criticized for spending their money on small pleasures instead of saving for a home. Today, the focus has shifted to Generation Z, accused of preferring vacations, deliveries, gadgets or dining out over saving.
The author notes, however, that behind these complaints lies a larger discussion about the economic changes of recent decades. “Loot is cheap. Rent is dear,” he summarizes, suggesting that many of the products and experiences that offer immediate gratification are more accessible than major financial goals like buying a home.
“Even if we don’t always call it that, “doomspending”, this phenomenon has also gained momentum in Romania. In the cabinet, many young people today describe feeling that life’s big goals—buying a home, being financially stable, starting a family—are harder to achieve than they were for previous generations. When these goals seem very distant or even impossible to achieve, the motivation to save can decrease,” Gabriela Răileanu, an Adlerian psychotherapist, explains for “Adevărul”.
“It’s not necessarily a lack of financial responsibility, but a change in relationship with the future. When the future seems uncertain, the present becomes much more important.” she clarifies.
In his opinion, young people are more vulnerable to this behavior also because they are in a stage of life where they are trying to build stability and autonomy.
“Typically, this period is supported by the belief that effort today will bring visible results in the future. But when there is economic insecurity, inflation, high costs of living, or difficulty in accessing important goals, this link between the present and the future is weakened. From a psychological perspective, people are more difficult to invest in a future that they do not perceive as predictable or accessible.” claims Gabriela Răileanu.
Moreover, if previous generations had limited access to goods and services, today almost anything can be bought in seconds, directly from the phone, as she points out.
“At the same time, we are constantly exposed to messages that associate consumption with happiness, success, freedom, or personal fulfillment. So not only are there more reasons to worry about the future, but there are also more opportunities for immediate reward through consumption than at any other time in history.”the psychotherapist draws attention.
According to financial expert Adrian Asoltanie, the mechanism is well known by companies and constantly exploited through marketing and advertising. “Managing money is 80% psychology and if we understand the psychology of the buyer we will also learn how to manage our money better. Basically, people act including financially for two reasons: either they seek pleasure or they try to avoid pain”, explained this, recently, for “Adevărul”.
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In his view, advertisements and marketing campaigns are built precisely to activate these two fundamental impulses, either by promising experiences, comfort and satisfaction, or by suggesting solutions to problems, fears or discomfort.
Why saving loses to a new gadget
In fact, Gabriela Răileanu points out that one of the reasons why it is so difficult for people to resist the temptation to spend is related to the way the human brain works. A spontaneously booked holiday, a new gadget or an online order offers an immediate and tangible reward. In contrast, saving involves giving up a present pleasure for a future benefit, sometimes distant and uncertain: “The more uncertain the future seems, the more alluring the immediate reward becomes”
In many cases, doomspending also ends up functioning as a form of emotional regulation. When people are anxious, stressed, or down, drinking can provide a temporary sense of control and comfort.
“When people are stressed, anxious, disappointed or emotionally exhausted, consumption can function as an emotional regulation mechanism. For a short time, shopping or pleasant experiences reduce tension and provide a sense of control. The problem is that the effect is temporary. Difficult emotions return, and sometimes they are also accompanied by guilt or financial stress. This can form a vicious circle in which consumption becomes the preferred solution to manage emotional discomfort.” score this one.
A similar explanation is offered by Gabriela Marc, senior clinical psychologist and associate university lecturer at the Faculty of Psychology and Educational Sciences, who recently stated for “The Truth” that, most of the time, people don’t just buy objects.
“Few people buy only objects, because behind every purchase there is almost always a desired state, an emotional need or a silent attempt to regulate something inside, and what seems on the surface a simple gesture of consumption becomes, deep down, a form of seeking peace, meaning or balance at a time when these are not easily accessible”this point.
When it becomes a problem
Gabriela Răileanu points out that it would be wrong to explain the phenomenon exclusively by the lack of financial education. At the same time, she says, not every present-oriented expenditure is problematic. Experiences that bring joy, rest, human connection, or personal development have value and contribute to well-being.
Signs that doomspending is starting to become a problem include stress-relief shopping, repeated feelings of regret after spending, difficulty meeting your financial limits, accumulating debt, or believing that saving no longer makes sense.
The solution, the psychotherapist says, begins with understanding that behind impulsive spending are often legitimate emotional needs, such as the need for safety, control, belonging or reward. In parallel, financial goals become easier to achieve when they are broken down into small, realistic steps.
“Even modest but constant savings convey an important psychological message: ‘I have influence over my future’. This feeling of control and influence is one of the most important protective factors against anxiety (…) Between ‘I have to save everything’ and ‘I have to live only in the present’ there is a healthy space. A space in which we can enjoy life without completely abandoning responsibility for the future”, concludes Gabriela Răileanu.
