Current:Home > FinanceGen Z is 'doom spending' its way through the holidays. What does that mean? -Infinite Edge Capital
Gen Z is 'doom spending' its way through the holidays. What does that mean?
View
Date:2025-04-12 06:58:42
You’ve heard of doomscrolling, now get ready for doom spending.
A new report published by consulting firm Simon-Kucher found a dramatic increase in year-over-year holiday spending by Generation Z, or people born between 1997 and 2012. The study dubs this trend of young consumers spending more than they can afford to experience short-term gratification “doom spending.”
Doom spending is essentially an offshoot of doomscrolling the study says, explaining that members of Gen Z are most likely to purchase things as a coping mechanism because they feel pessimistic about the future after spending excessive time scrolling through negative online content.
“I didn't coin the term, but I found it very interesting,” said Shikha Jain, a Simon-Kucher partner who worked on the report.
She said doom spending is a coping mechanism for stress.
Holiday deals:Shop this season’s top products and sales curated by our editors.
"It involves impetuous purchases that offer this short-term delight but can cause long-term financial strain," she said. "It’s more than just impulse buys or retail therapy.”
More:From Gen Z to Boomers: How much money each generation thinks they need for success
Members of Gen Z said they planned to spend about 21% more than last year during the holidays, according to the report's survey of 1,000 U.S. consumers. In contrast, researchers found Millennials – born from 1981 to 1996 – planned to spend 15% more, Members of Generation X planned to spend 5% more, and Baby Boomers planned to spend 6% more.
Younger people growing up, entering the workforce and earning more money does not alone explain this “doom spending” trend, Jain told USA TODAY.
If these trends were happening year over year, it would make sense, she said, "But the fact that it’s such a jump from last year to this year, says that it’s very much a more recent thing.”
Members of Gen Z and Millennials are also more likely to get gift ideas from social media and to opt for Afterpay, a service that allows you to pay over time,the report found. They are more influenced by time spent scrolling online and more likely to spend beyond their budgets than older generations, the report said.
While credit cards and buy now/pay later agreements have been around for decades, Jain says “doom spending" is a relatively new phenomenon with no direct historical comparison. She added that it shows just how pessimistic today’s young people are about the future.
“All of these negative events and constant fear and literally doom and gloom that younger consumers are exposed to – geopolitics, macro-environment, local and social news – they just grew up in a very non-sheltered life compared to other generations,” Jain said of Gen Z. “They don’t have many ways to self-soothe or cope.”
While some find refuge in “doom spending” others escape to the world of self-care, but that path is also often expensive.
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
veryGood! (778)
Related
- South Korean president's party divided over defiant martial law speech
- Swiftie couple recreates Taylor Swift album covers
- NBA playoff games today: How to watch, predictions for Game 1s on Saturday
- Harry Styles fan sentenced to prison for stalking the Grammy-winning singer: Reports
- Intel's stock did something it hasn't done since 2022
- The drug war devastated Black and other minority communities. Is marijuana legalization helping?
- Lawsuits under New York’s new voting rights law reveal racial disenfranchisement even in blue states
- Nacho fries return to Taco Bell for longest run yet with new Secret Aardvark sauce
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- White Green: Gold Market Trend Analysis for 2024
Ranking
- How to watch new prequel series 'Dexter: Original Sin': Premiere date, cast, streaming
- An Alabama prison warden is arrested on drug charges
- How an Arizona Medical Anthropologist Uses Oral Histories to Add Depth to Environmental Science
- NBA playoff games today: How to watch, predictions for Game 1s on Saturday
- Questlove charts 50 years of SNL musical hits (and misses)
- Man dies after setting himself on fire near Trump trial courthouse in NYC. Here's what we know so far.
- 3 hospitalized after knife attack on boat in New York City, along East River in Brooklyn
- Mandisa, Grammy-winning singer and American Idol alum, dead at 47
Recommendation
DoorDash steps up driver ID checks after traffic safety complaints
South Dakota man sentenced to nearly 90 years in prison for his baby son’s 2021 death
Police to review security outside courthouse hosting Trump’s trial after man sets himself on fire
Chronic wasting disease: Death of 2 hunters in US raises fear of 'zombie deer'
Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
A rabbi serving 30 years to life in his wife’s contract killing has died, prison officials say
Why is 4/20 the unofficial weed day? The history behind April 20 and marijuana
Dwayne Johnson talks Chris Janson video collab, says he once wanted to be a country star