Homeownership was once a right of passage into adulthood, along with settling down, starting a family, and finally, enjoying the fruits of your labor. But the American dream feels so out of reach for young people today, that they’re not even bothering to save up for the future. Instead, Gen Z and young millennials are “doom spending” by splashing out on luxury escapes, Taylor Swift concert tickets and designer goods to cope with their financial limitations.
“When older people ask me how young people are affording nice things that they wouldn’t even buy for themselves, “I tell them it’s because we can’t afford anything else,” Maria Melchor, a 27-year-old financial content creator explained to millions of TikTok users.
“Homeownership or starting a family is so out of reach that we’re using that down payment or kid money on whatever it is we can afford that’ll bring us a semblance of the kind of adulthood we were promised,” she continued in the viral video. “When houses are a million dollar plus and an older couple will likely outbid us anyway, we’re gonna relinquish any lingering delusions about homeownership.”
Essentially, splurging feels better than stressing about the fact that they will probably be renting into retirement.
“My mother asking me when I’m gonna stop traveling and buy a house. I can’t afford a house but I can travel,” one user agreed.
Many of the comments echoed how they have been saving to buy a house for years, but the property market boom is outpacing the rate at which they can save.
Meanwhile, with a looming recession, multiple ongoing wars, and climate change at a catastrophic tipping point, others voiced doubt over whether the future is even worth investing in.
“I just tell myself I deserve to enjoy life right now since it's gonna go to hell pretty soon anyway,” one user wrote.
“Future is not guaranteed, it’s crumbling before our eyes,” another added. “Enjoying what we have while we can is the way to go.”
Gen Z isn’t alone
Although young people are most likely to be “doom spending”, they’re not alone in the habit—even older generations are hopelessly splashing their cash and turning to retail therapy.
Research from the financial firm Credit Karma shows that more than a quarter of Americans are "doom spending" in order to manage their worries about the macroeconomy and foreign affairs.
Just like Gen Z, some of the top concerns among respondents included high inflation, cost-of-living increases, unaffordable housing, and not having enough money for basic necessities like rent, let alone small luxuries.
"Much like doom scrolling, we're seeing people mindlessly shop to soothe concerns about the economy and foreign affairs, which could take a toll on their financial wellbeing," Courtney Alev, consumer financial advocate at Credit Karma, said in the report. “If you’re feeling stressed—you’re not alone.”
To ease money worries, Alev recommends assessing how much you have coming in and out each month, as well as how much debt you owe.
“This will help you make a plan for how you’re going to spend your money moving forward,” she continues, adding that consumers should consider using cash and deleting stored card information on browsers to make shopping more mindful.
