Current:Home > NewsGen Z is 'doom spending' its way through the holidays. What does that mean?-DB Wealth Institute B2 Reviews & Ratings
Gen Z is 'doom spending' its way through the holidays. What does that mean?
lotradecoin availability View Date:2024-12-26 00:52:12
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 [email protected] 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! (564)
Related
- As Baltimore’s Sewer System Buckles Under Extreme Weather, City Refuses to Help Residents With Cleanup Efforts
- Soda company recalls drinks sold at restaurants for chemicals, dye linked to cancer: FDA
- 4 hospitalized after small plane crashes in suburban Denver front yard
- Appointed by Trump, Hunter Biden trial judge spent most of her career in civil law
- Jim Harbaugh wants to hire Colin Kaepernick to Chargers' coaching staff. Will the QB bite?
- Judge orders temporary halt to UC academic workers’ strike over war in Gaza
- The Valley Star Jesse Lally Claims He Hooked Up With Anna Nicole Smith
- Judge orders temporary halt to UC academic workers’ strike over war in Gaza
- Rob Schneider Responds to Daughter Elle King Calling Out His Parenting
- Sale and use of marijuana permitted under ordinance Cherokees in North Carolina approved
Ranking
- Video shows 2 toddlers in diapers, distraught in the middle of Texas highway after crash
- Might we soon understand sperm whale speak? | The Excerpt
- Harvey Weinstein lawyers argue he was denied fair trial in appeal of LA rape conviction
- Who are the highest-paid players in the WNBA? A list of the top 10 salaries in 2024.
- Sofía Vergara Responds After Joe Manganiello Says Her Reason for Divorce Is “Not True”
- For $12, This Rotating Organizer Fits So Much Makeup in My Bathroom & Gives Cool Art Deco Vibes
- USA's cricket team beats Pakistan in stunning upset at T20 World Cup
- Soda company recalls drinks sold at restaurants for chemicals, dye linked to cancer: FDA
Recommendation
-
Wisconsin’s Evers urges federal judge not to make changes at youth prison in wake of counselor death
-
Glen Powell Shares His One Rule for Dating After Finding Fame
-
Optimism is just what the doctor ordered. But what if I’m already too negative?
-
Celine Dion talks stiff-person syndrome impact on voice: 'Like somebody is strangling you'
-
Social media celebrates Chick-Fil-A's Banana Pudding Milkshake: 'Can I go get in line now?'
-
New Jersey businessman cooperating with prosecutors testifies at Sen. Bob Menendez’s bribery trial
-
As Another Hot Summer Approaches, 80 New York City Neighborhoods Ranked Highly Vulnerable to Heat
-
Rare 7-foot fish washed ashore on Oregon’s coast garners worldwide attention