“Doom Spending”: Why Gen Z and Millennials Are Spending Despite Financial Stress 2026
Introduction
For many young Americans, financial stress has become part of everyday life. Rent remains expensive in many cities, homeownership can feel out of reach, and the cost of groceries, insurance, transportation and other essentials continues to shape household budgets.
Yet despite those pressures, some Gen Z and Millennial consumers are still spending money on things they do not necessarily need.
The behavior has become known as “doom spending.”
Doom spending generally refers to spending money as a way to cope with anxiety, uncertainty or pessimism about the future. It can involve shopping, dining out, travel, entertainment or other discretionary purchases that provide a temporary feeling of comfort.
The trend does not mean that every young American is financially irresponsible. Instead, it highlights a complicated relationship between financial stress and consumer behavior.
Research from Intuit Credit Karma found that 37% of Gen Z respondents and 39% of Millennials reported doom spending. The same research found that 63% of Americans said the state of the world and economy created anxiety about their finances.
Those numbers point to an unusual consumer contradiction: people can feel financially worried while continuing to spend.
What Is Doom Spending?
Doom spending is a term used to describe spending despite concerns about personal finances or the broader economy.
The purchase itself is not necessarily the problem.
The motivation behind the purchase is what matters.
Someone who saves for months before taking a vacation is not necessarily doom spending. A person who buys a $50 meal with money already included in their monthly budget is not automatically doom spending either.
The behavior becomes more concerning when shopping becomes a repeated emotional response to stress.
A person may have a difficult day, see negative economic news and then make an unnecessary purchase because it provides an immediate sense of relief.
That relief can be real, but it is usually temporary.
Doom Spending Is Different From Normal Discretionary Spending
Discretionary spending is a normal part of household finances. People need entertainment, social activities and occasional purchases that are not essential.
Doom spending is more closely connected to emotional decision-making.
Some common warning signs include:
- Buying things immediately after feeling stressed
- Spending money that was intended for bills or savings
- Using credit for purchases that are not affordable
- Shopping mainly to improve a bad mood
- Feeling that saving is pointless because the future seems uncertain
- Repeating the same spending pattern despite financial problems
The distinction is important because not every purchase made by Gen Z or Millennials should be labeled as doom spending.
The Numbers Behind Doom Spending
Recent consumer surveys provide a clearer picture of the trend.
| Consumer Indicator | Reported Finding |
|---|---|
| Gen Z reporting doom spending | 37% |
| Millennials reporting doom spending | 39% |
| Americans reporting financial anxiety related to the economy and world | 63% |
| Gen Z saying bad news online or on social media drives stress spending | 53% |
| Millennials saying bad news online or on social media drives stress spending | 49% |
| Gen Z and Millennials saying building wealth is harder than for their parents | 38% |
| Americans who have used at least one buy now, pay later service | 39% |
| Credit-card holders carrying balances month to month | 44% |
These figures come from different surveys and should not be treated as one combined statistical measurement. They illustrate different parts of the relationship between financial stress, social media and consumer spending.
Why Are Gen Z and Millennials Doom Spending?
The Future Can Feel Financially Uncertain
One reason behind doom spending is the way younger Americans view long-term financial goals.
For decades, young adults have been told that hard work, saving and career growth can eventually lead to homeownership and financial security.
Many younger consumers still want those goals.
But the path can look increasingly difficult.
Housing costs, rent, student debt and everyday expenses can make long-term financial planning frustrating.
Bankrate research has found that 38% of Gen Z and Millennials surveyed believed building financial wealth was harder for them than it was for their parents because of the economy.
That perception can affect how people think about saving.
If a person believes buying a home is years away or impossible, saving another $200 may feel less meaningful than spending that money on something enjoyable today.
Financial Stress Can Produce Different Responses
Financial stress does not affect everyone in the same way.
One consumer may respond by cutting restaurant meals and entertainment.
Another may start saving more aggressively.
Someone else may decide that because the future already feels uncertain, they want to enjoy their money now.
That is where doom spending becomes important.
The behavior can be understood as a short-term response to a long-term problem.
The consumer feels uncertain about tomorrow and chooses something that provides satisfaction today.
Inflation Has Changed How Consumers Think About Money
Higher Prices Create Financial Fatigue
Inflation can affect more than a household’s monthly budget.
It can also affect confidence.
When consumers repeatedly see higher prices for groceries, housing, insurance and other necessities, they may feel that their money is losing purchasing power.
Even when inflation slows, prices generally do not automatically return to where they were before.
That can create a sense of financial fatigue.
Consumers may begin to feel that saving is difficult because so much of their income is already committed to necessities.
Credit Karma research found that the cost of living was a leading concern among Americans worried about the economy, followed by inflation and other financial pressures.
For some consumers, that environment can encourage a short-term mindset.
Instead of thinking about what they can afford five years from now, they focus on what they can enjoy this weekend.
Bad News and Shopping Appear in the Same Feed
Social media has changed the way consumers experience financial information.
A person can see a story about inflation, a video about layoffs and a discussion about housing affordability.
A few seconds later, the same feed can show an influencer promoting clothing, travel, restaurants or another product.
That combination can create an unusual emotional cycle.
Negative information can increase anxiety.
Advertising and influencer content can then offer an immediate escape.
Credit Karma research found that 53% of Gen Z respondents and 49% of Millennials said bad news online or on social media drives them to stress spend.
That does not mean social media causes every purchase.
It does show that online environments can influence how some younger consumers respond to financial stress.
Social media also creates constant exposure to other people’s lifestyles.
A young adult may see someone buying a house, traveling internationally or purchasing expensive clothing.
The viewer may understand that social media does not show the full financial picture.
But the comparison can still influence emotions.
Consumers may feel that they are falling behind.
Buying something can then become a way to feel better about that comparison.
The Rise of Instant Online Shopping
Shopping has never been easier.
Consumers can purchase almost anything from a smartphone without leaving home.
Saved payment information and one-click checkout reduce the amount of time between wanting something and buying it.
That convenience is useful, but it can also remove an important moment of reflection.
A traditional shopping trip might involve driving to a store, comparing prices and thinking about the purchase.
Online shopping can happen in seconds.
For someone already feeling stressed, that speed can make emotional spending easier.
Buy Now, Pay Later Can Add Another Layer
Smaller Payments Can Make Purchases Feel Cheaper
Buy now, pay later services have become increasingly visible in online shopping.
Instead of seeing the entire price immediately, consumers may see a smaller installment amount.
A $400 purchase can look very different when presented as four payments of $100.
The total cost has not changed.
But the psychological impact can.
Bankrate reported that 39% of Americans surveyed had used at least one buy now, pay later service.
The issue is not that every use of installment financing is harmful.
The concern arises when consumers use multiple payment plans or borrow for purchases they cannot comfortably afford.
Debt Can Turn Temporary Relief Into Long-Term Stress
Doom spending can create a cycle:
Financial stress → emotional spending → debt → more financial stress
The purchase may provide immediate satisfaction.
The bill arrives later.
If the consumer cannot pay the balance, interest and additional obligations can make the original purchase more expensive.
Credit-card debt can be particularly difficult for households already struggling with their monthly budgets.
Bankrate has reported that 44% of credit-card holders were carrying balances from month to month in its cited research.
Experiences Are Also Part of Doom Spending
Travel, Dining and Entertainment
Doom spending is not limited to online shopping.
Young consumers also spend on experiences.
Travel, concerts, restaurants, festivals and entertainment can provide immediate emotional rewards.
For someone who feels uncertain about the future, an experience can seem more valuable than putting the same money toward a distant financial goal.
The thinking can be simple:
“I do not know what the future will look like, but I can enjoy this today.”
There is nothing inherently wrong with spending money on experiences.
The problem occurs when those experiences are repeatedly financed with debt or come at the expense of essential financial goals.
The Psychology Behind Doom Spending
Spending Can Create a Sense of Control
One of the most interesting aspects of doom spending is the feeling of control it can provide.
Consumers cannot control inflation.
They cannot control mortgage rates.
They cannot control the stock market.
They cannot control whether an employer reduces its workforce.
But they can decide whether to purchase something.
That decision can create a small sense of personal control during an uncertain period.
This may explain why simply telling someone to stop spending does not always solve the problem.
If spending is being used as a coping mechanism, the underlying financial stress also needs to be addressed.
Immediate Happiness Can Feel More Certain Than Future Wealth
Saving is based on a future benefit.
Spending provides an immediate result.
For a consumer who is optimistic about the future, saving may feel rewarding.
For someone who feels pessimistic, the future reward can seem too distant.
That can make today’s purchase more attractive.
The problem is that repeated short-term decisions can eventually reduce future financial choices.
Are Gen Z and Millennials Really Bad With Money?
The Data Does Not Support a Simple Answer
It would be easy to describe doom spending as evidence that younger Americans are irresponsible.
The reality is much more complicated.
Gen Z and Millennials include people with very different incomes, savings levels, housing situations and debt obligations.
Some young Americans earn high salaries and have substantial savings.
Others are struggling to pay rent and essential bills.
Some receive family support.
Others are financially independent.
For that reason, doom spending should be understood as a consumer behavior rather than a description of an entire generation.
Economic conditions also matter.
A young adult entering the workforce during an expensive housing market may face very different financial challenges from someone who entered the workforce decades earlier.
No-Buy and Low-Buy Challenges Are Growing
Young Consumers Are Also Trying to Spend Less
The story does not end with doom spending.
The same social-media environment that encourages consumption has also helped spread financial challenges designed to reduce unnecessary purchases.
No-buy and low-buy challenges encourage consumers to restrict discretionary spending for a specific period.
Some people stop buying clothing.
Others limit restaurant meals or online shopping.
Credit Karma has reported that building savings and paying down debt are among the motivations behind these challenges.
That suggests many younger consumers understand the consequences of emotional spending.
They are not simply ignoring their financial problems.
Some are actively looking for ways to regain control.
How to Reduce Doom Spending
1. Wait Before Making Nonessential Purchases
A simple waiting period can help.
Before buying something that is not necessary, wait 24 hours.
If the desire remains and the purchase fits the budget, the decision is more likely to be intentional.
2. Set a Monthly Fun-Money Budget
A realistic budget should include room for enjoyment.
Completely eliminating discretionary spending can make a financial plan difficult to maintain.
Instead, establish a specific amount for restaurants, entertainment, shopping or travel.
Once that amount is used, wait until the next budget period.
3. Automate Savings
Saving money should not depend entirely on willpower.
An automatic transfer after payday can move money into savings before it becomes available for discretionary purchases.
Even a small amount can create a habit.
The objective is consistency rather than perfection.
4. Remove Stored Payment Information
Removing saved credit-card information from shopping websites can create an additional step before a purchase.
That extra moment can be useful.
It gives consumers time to ask:
“Do I actually need this, or am I buying it because I am stressed?”
Consumers who regularly buy products after seeing them online can reduce exposure to shopping-related content.
Unfollowing promotional accounts, muting certain keywords and limiting social-media time can reduce unnecessary triggers.
6. Track Emotional Purchases
For 30 days, record every nonessential purchase.
Write down:
- What you bought
- How much you spent
- How you felt before purchasing
- Whether you actually needed the item
- How you felt afterward
Patterns can become surprisingly clear.
Someone may discover that most impulse purchases happen late at night.
Another person may spend after reading negative news.
Understanding the trigger is often the first step toward changing the behavior.
What Doom Spending Means for the U.S. Economy
Consumer Confidence and Consumer Spending Can Move in Different Directions
Doom spending presents an interesting question for economists.
Consumers can be pessimistic about the economy while continuing to spend.
That means financial sentiment and actual purchasing behavior do not always move together.
Bankrate research has found that some consumers continue prioritizing discretionary activities such as dining, travel and entertainment despite financial concerns.
This matters because consumer spending is a major part of the U.S. economy.
If households continue spending, businesses may benefit from stronger demand.
But there is a difference between spending from income and spending through debt.
A household that spends $500 from money already saved is in a different financial position from a household that puts $500 on a credit card and cannot repay it.
The Source of Spending Matters
For economists and financial analysts, the important question is not only how much consumers spend.
It is also how they finance that spending.
Important indicators include:
- Credit-card balances
- Household savings
- Consumer debt
- Delinquency rates
- Household income
- Buy now, pay later use
- Housing costs
- Discretionary spending
These indicators can help reveal whether consumer spending is supported by income or increasingly dependent on borrowing.
Doom Spending Is Not a Financial Diagnosis
The phrase “doom spending” is a popular consumer-finance term.
It is not a clinical diagnosis.
A person who makes an occasional impulse purchase does not automatically have a spending problem.
The concern is repeated behavior that damages financial stability.
That distinction matters because financial stress can have legitimate economic causes.
Housing costs, wages, debt, inflation and other pressures can all affect a household’s financial situation.
Blaming individual consumers for every financial problem ignores the broader economic environment.
What Doom Spending Says About Young Americans
The deeper story behind doom spending is not simply that young people like to shop.
It is about confidence in the future.
When consumers believe that long-term financial security is achievable, saving can feel worthwhile.
When they believe major goals are becoming increasingly difficult, immediate rewards can become more attractive.
That is why doom spending deserves attention.
It provides a window into how economic expectations influence everyday financial decisions.
A consumer does not need to follow Wall Street to understand that housing is expensive.
They do not need an economics degree to notice higher grocery bills.
They do not need to study monetary policy to worry about financial security.
Those economic pressures eventually show up in household behavior.
Sometimes the result is more saving.
Sometimes it is less spending.
And sometimes it is the decision to spend today because tomorrow feels uncertain.
Doom spending is not simply a story about Gen Z and Millennials buying things they do not need.
It is a story about financial uncertainty, psychology and the desire for immediate control.
Some younger Americans are facing high housing costs, expensive everyday necessities and difficult long-term financial goals.
Those pressures can produce different responses.
Some people save more.
Some cut spending.
Others spend more on experiences and purchases that provide immediate satisfaction.
The important distinction is whether that spending fits within the household budget.
A dinner with friends, a vacation or a new purchase can be part of a healthy financial life.
The danger begins when emotional spending becomes a substitute for financial planning or when purchases are repeatedly financed with debt.
The goal does not have to be stopping all discretionary spending.
The healthier goal is finding a balance between enjoying today’s money and protecting tomorrow’s financial security.
For Gen Z and Millennials navigating an uncertain economy, that balance may be more important than ever.
Frequently Asked Questions
What does doom spending mean?
Doom spending refers to spending money despite financial or economic concerns, often as a way to cope with stress, anxiety or uncertainty about the future.
Why are Gen Z and Millennials associated with doom spending?
Surveys have found relatively high levels of reported doom spending among Gen Z and Millennials. Financial uncertainty, housing costs, cost-of-living concerns and social media exposure are among the factors associated with the behavior.
Is doom spending the same as impulse buying?
No. Impulse buying is generally an unplanned purchase. Doom spending specifically connects spending behavior with feelings such as stress, anxiety, pessimism or uncertainty.
Can doom spending lead to debt?
Yes. Repeated discretionary purchases made with credit cards or installment financing can contribute to debt, particularly when consumers cannot repay balances in full.
Does doom spending mean Gen Z and Millennials are financially irresponsible?
No. Doom spending describes a particular behavior and does not represent every Gen Z or Millennial consumer. Financial circumstances vary significantly among younger Americans.
How can someone stop doom spending?
Consumers can start by identifying emotional spending triggers, creating a realistic discretionary budget, waiting before making nonessential purchases, automating savings and reducing exposure to shopping-focused social-media content.
Conclusion
The rise of doom spending reflects a broader change in the way some young Americans think about money.
Financial stress does not always lead people to save more.
Sometimes it produces the opposite response.
When the future feels uncertain, immediate experiences can seem more valuable than distant financial goals.
That does not make every purchase irresponsible.
But when spending becomes a regular response to anxiety, it can turn a temporary emotional solution into a long-term financial problem.
The strongest approach is not to eliminate enjoyment.
It is to make spending intentional.
Consumers who can create room for both present enjoyment and future savings may be better positioned to handle economic uncertainty without allowing financial stress to control every decision.
Victoria Hayes
Personal Finance & Economic Trends Writer
Victoria Hayes covers personal finance, consumer spending, inflation, interest rates and economic trends affecting American households. Her reporting focuses on making complex financial developments understandable through clear, fact-based analysis.
For this report, Hayes examined consumer spending trends, financial-stress data and research on Gen Z and Millennial spending behavior to explain the growing discussion around “doom spending.”
Coverage: U.S. Economy, Personal Finance, Consumer Spending, Banking & Economic Trends
Location: New York, USA