As the impending presidential election loomed, Kelsea Palm, a senior at Wheaton College, experienced a wave of anxiety. In response, she fell into a pattern familiar to many Americans: shopping. Together with a friend, Kelsea explored shops in Massachusetts just before Election Day. Although she typically prides herself on being a responsible shopper, the mounting stress led her to make an impulsive purchase—a purse that offered a fleeting sense of relief. “It was a new thing that made us feel like we had some sort of control over our lives. We can vote, but what else can we do? We can get a bag that’ll make us happy,” she explained to CNN, indicating how consumerism often becomes a coping mechanism for anxiety.
Kelsea’s experience is becoming increasingly commonplace. The concept of “doom spending”—spending money to alleviate fears related to broader issues such as politics or the economy—has gained traction, particularly among younger consumers. Indicators of this trend are visible on social media platforms like YouTube, TikTok, and Reddit, as individuals share experiences and financial advice in the context of economic uncertainty. Surveys, such as one conducted in June by Axios in collaboration with The Harris Poll, reveal a mindset prevalent among Gen Z and millennials. These generations are more inclined to indulge in current pleasures rather than postpone gratification for an uncertain future.
While indulging in shopping may provide a temporary distraction, financial experts caution that doom spending can result in long-term financial repercussions. Courtney Alev, a consumer financial advocate at Credit Karma, emphasized humanity’s irrational tendencies regarding emotional spending. According to her observations, roughly one-third of Americans from various generations struggle with saving due to ongoing feelings of uncertainty regarding current and future conditions. This pervasive sense of economic pessimism is often justified, as Americans are bombarded by continuous reports about the economy’s instability.
At the time of the 2020 election, the economic landscape that then-President-elect Donald Trump was to inherit appeared strong, boasting low unemployment rates and favorable growth projections. However, a myriad of Americans felt out of touch with these statistics, with only 37% expressing satisfaction with the state of the economy, according to CNN polling. Additionally, frustrations surrounding escalating grocery and housing costs contribute to a prevailing negative perception of economic conditions, further exacerbating feelings of financial despair.
Current conditions have further fueled the rise in credit card debt, as indicated by a Bankrate survey revealing that half of all American cardholders consistently carry over balances, particularly amidst soaring interest rates. In the third quarter of 2023, credit card delinquencies surged past pre-pandemic levels, sparking concerns about consumers’ financial well-being.
The internet is another influential player in the realm of doom spending. Many individuals frequently confront negative news online, which shapes their spending behavior. Aja Evans, a recognized financial therapist and author, pointed out how the overwhelming flow of information paired with influencer culture can lead individuals to feel compelled to make purchases as a form of avoidance or coping. For many, the act of shopping becomes intertwined with their emotional states.
As the election outcomes unfolded, the cycle of doom spending continued, with experts anticipating heightened online spending behavior in the days following the election as young Americans navigated their feelings about the results. The relationship between political affiliation and economic sentiment also surfaced in various studies, indicating that feelings about the economy often align with one’s political allegiance.
Regardless of viewpoints or election outcomes, whether positive or negative, spending behaviors are likely to reflect the emotional state of consumers. Alev suggests that those unhappy with the results may partake in spending to soothe their disappointment, while those pleased may manifest spending as a form of reward.
To curb destructive spending habits, experts recommend self-awareness as a vital first step. By understanding their belief systems related to money, individuals can become more attuned to their spending triggers. Additionally, unplugging from pervasive online influences—what Evans describes as “information overload”—can foster more balanced behaviors.
Ultimately, engaging in alternative coping strategies—such as exercising, calling a friend, or taking up a new hobby—can redirect emotional energies productively. While it is perfectly acceptable to indulge, consumers are advised to take heed of their budgets and feelings of discomfort, as these insights can guide healthier, more conscious spending decisions.
