Generation Z, born between 1997 and 2012, is known as a generation that is highly connected to technology and social media. But behind this technological advancement, a new phenomenon has emerged known as “doom spending.” Doom spending is the behavior of impulsive and excessive shopping as a way to cope with stress or anxiety about the future. This phenomenon is increasingly prevalent among Gen Z, especially amidst global economic uncertainty. This article will discuss this phenomenon and provide practical strategies for controlling spending.
Definition of Doom Spending
Doom Spending is a term used to describe the habit of spending without a plan, often triggered by negative feelings such as stress, anxiety, or boredom. It is an emotional response that can lead to impulsive purchases, which are often unnecessary and can interfere with long-term financial goals. This phenomenon is often triggered by economic uncertainty, job instability, and social pressure from social media promoting a lavish lifestyle.
Why Is Gen Z Vulnerable to Doom Spending?
Generation Z, born between the mid-1990s and early 2000s, grew up in a digital world. They were exposed to advertisements and influencers that constantly promoted a consumerist lifestyle. In addition, economic uncertainty and social pressures also contributed to excessive spending behavior.
Causes of Doom Spending Among Gen Z
- Economic Uncertainty : Many members of Gen Z feel pessimistic about their economic future. They find it difficult to save or plan for the future due to ongoing economic uncertainty.
- Social Pressure : Social media plays a huge role in driving doom spending. Images and videos of lavish lifestyles often make Gen Z feel the need to follow the trend, even if they can’t afford it financially.
- Anxiety and Stress : Many members of Gen Z use shopping as a way to cope with stress and anxiety. Shopping provides instant gratification that can help relieve negative feelings, if only temporarily.
Negative Impacts of Doom Spending
- Piling Debt : Doom spending can lead to piling debt due to uncontrolled spending. Many Gen Z members use credit cards or “buy now, pay later” services which ultimately add to their financial burden.
- Lack of Savings : With excessive spending, many Gen Z members struggle to save. This can have a negative impact on their financial future, especially when it comes to retirement planning or buying a home.
- Mental Health : While shopping can provide instant gratification, its long-term effects can be detrimental to mental health. The guilt and stress of debt can worsen a person's mental health.
How to Control Spending
Here are some ways to control spending in Gen Z:
- Create a Budget : Creating a monthly budget can help control spending. By knowing how much money is coming in and going out, Gen Z can be wiser in managing their finances.
- Avoid Social Media Temptations : Reducing the amount of time you spend on social media can help reduce the pressure to live a lavish lifestyle. Focus on your needs rather than your wants.
- Use the “30 Day” Method : Before buying an unnecessary item, wait 30 days. If after 30 days you still feel the need to buy the item, then buy it. This method can help reduce impulse buying.
- Find Alternatives to Deal with Stress : Instead of shopping, find other ways to deal with stress such as exercising, meditating, or talking to friends and family.
- Financial Education : Increasing knowledge about financial management can help Gen Z make wiser decisions. There are many online resources that can help with this.
Conclusion
Doom spending is a growing phenomenon among Gen Z, driven by economic uncertainty, social pressures, and anxiety. While shopping can provide instant gratification, its long-term effects can be detrimental to financial and mental health. Therefore, it is important for Gen Z to learn to control their spending by creating a budget, avoiding the temptation of social media, and finding alternative ways to cope with stress. With these steps, Gen Z can build a more stable and healthy financial future.
We hope this article is useful and helps Gen Z in managing their finances better! If you have any questions or need more information, don't hesitate to ask.
