Inflation-Driven Doom Spending Among Gen Z and Millennials: Understanding the Economic Impact

Understanding Doom Spending

Doom spending refers to the tendency of consumers, particularly among Generation Z and Generation Y, to spend impulsively during uncertain economic times. This behavior has been particularly evident as inflation rises, impacting personal finance and spending habits.

Economic Factors Influencing Spending

• Inflation: Rising costs are squeezing budgets, leading many to indulge in luxury purchases.
• Recessions and Depressions: Economic downturns make financial stability feel elusive, contributing to the need for instant gratification.
• Holiday Spending: The holiday season exacerbates these patterns as individuals attempt to maintain lifestyles despite economic constraints.

Strategies to Combat Doom Spending

1. Set a budget to manage holiday shopping effectively.
2. Prioritize affordable and low-income housing costs.
3. Reassess personal finance goals in the context of economic pressures.