---
title: "Doom Spending: A Coping Mechanism for Economic Anxiety"
description: Gen Z and millennials are increasingly ‘doom spending.’- a coping mechanism for economic anxiety . How do we recognizing its roots in emotional and economic anxiety?
author: Dr Marina Nani (Editor-in-Chief)
date: 2024-09-25T10:51:36.000Z
updated: 2026-04-01T12:24:10.779Z
canonical: https://richwoman.co/article/doom-spending-a-coping-mechanism-for-economic-anxiety
image: https://cdn.nanimediahouse.com/ssbi9pweaea.jpg
categories: Money
content_type: Analysis
region: England
publication: Rich Woman Magazine
---

If you ever asked yourself what drove all these young people waiting for hours outside [Harrods ](https://richwoman.co/article/seeking-happiness-my-journey-into-harrods-fine-art-jewellery)or [Selfridges](https://richwoman.co/article/reselfridges-and-upcycling-a-sustainable-fashion-renaissance) to open their doors on sales promotions, the answer is “doom spending”- a growing trend that has captured the attention of psychologists and[ financial experts](https://richwoman.co/article/what-money-can-buy-stock-market-future-bonds-and-all-that-interview-with-jasmine-birtles). If you felt the impulse for excessive spending on[ luxury goods ](https://richwoman.co/article/the-psychology-behind-buying-luxury-goods-the-veblen-effect-and-the-perception-of-excellence)or experiences like designer clothes and[ travel](https://richwoman.co/article/solo-travel-airline-introduces-seating-option-for-women), you are not alone.

Doom spending is increasingly common among younger generations, especially [Gen Z](https://richwoman.co/article/new-study-on-genetics-and-healthy-lifestyle-habits-influence) and [millennials ](https://richwoman.co/article/what-women-want-a-life-re-imagined-to-close-the-wealth-gap)and is often driven by a pessimistic outlook on your financial future or broader economic challenges.

According to recent surveys, 43% of millennials and 35% of Gen Z have engaged in [doom spending to cope](https://richwoman.co/article/feeling-good-and-happy-your-20s-are-now-your-unhappiest-decade-as-since-2020-life-satisfactio) with stress and feelings of economic helplessness. Many young adults feel that traditional milestones—such as owning a home or saving for retirement—are becoming unattainable due to rising housing costs and wage stagnation. Instead of saving for a distant and uncertain future, they choose to “live in the moment” by spending on luxuries, often sacrificing long-term financial security in the process.

[Credit Karma](https://fave.co/3ztdizZ) revealed that this spending behaviour is often tied to the frustration of being unable to afford major life investments. For some, doom spending offers temporary relief, providing a sense of control or instant gratification in a world that feels increasingly chaotic. However, this can have long-term negative consequences, pushing individuals into debt or preventing them from building a financial safety net.

While spending on self-soothing purchases can momentarily lift spirits, doom spending exacerbates stress in the long run, as many find themselves financially overextended.

This has been particularly evident during high-spending events like Black Friday, where consumer behaviour has surged despite economic warnings.

Psychological research indicates that overreliance on consumerism to cope with stress can lead to a cycle of compulsive spending, making it difficult to save or plan for future financial security. While it might feel comforting to purchase something luxurious, the effect is usually short-lived, leaving individuals more anxious about their financial situation afterward.

Ultimately, [curbing doom spending](https://www.creditkarma.com/about/commentary/forget-doom-scrolling-americans-now-doom-spend-to-cope-with-stress) requires recognizing its roots in emotional and economic anxiety. Financial experts recommend exploring healthier ways to manage stress, such as practising mindfulness, seeking low-cost or free recreational activities, and prioritising saving as a form of self-care. Addressing the underlying emotional causes of this behaviour could help young people balance short-term gratification with long-term financial goals.

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