2024-11-16 11:00:00
On November 5, the day of the American presidential election, Celeste Acevedo, a 24-year-old lawyer living in Washington, felt a strong feeling of anxiety. “To overcome the anxiety of the election”she then decided to buy beauty products. In a TikTok video posted on her account, she details her purchases which, it seems, gave her relief. In the comments, a user thanks her for “normalize purchases made out of anxiety”.
Like millions of Americans, Celeste is a fan of « doom spending ». A practice of treating yourself to small pleasures when you feel gloomy, to combat anxiety, despite economic and financial concerns. A kind of therapy through self-gifts.
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In the United States, the phenomenon would affect 27% of the population in 2024, according to Credit Karmaa wealth management company. And within generation Z (young people born between the end of the 1990s and the beginning of the 2010s), the proportion of « doom spenders » would rise to 37%.
Distance from the “American dream”
The phenomenon would have been amplified during the presidential election. “Politics can often add to people’s stress levels […] and we see people spending money to cope with their emotions and reduce stress”analyzes Courtney Alev, personal finance manager at Credit Karma.
But the phenomenon goes deeper than that, far from being confined to the latest political events. Stagnating wages, increasing tuition fees and the cost of living… On social networks, many young people have been deploring structural economic problems for several months making them lose hope in the future.
In this regard, Zivon Ais, a young real estate agent, goes so far as to assert, in a video published on his YouTube channel, that “the American dream no longer exists”. Saving to become a homeowner – the traditional financial dream par excellence – seems to have become impossible to achieve for many young people. According to Better Mortgage Corporationan American company granting real estate loans, the median price of a house in the United States would have increased by 130% between 1980 and 2020, inflation taken into account. According to the YouTuber, his generation would then prefer “enjoy life” while traveling or purchasing “items that (she) doesn’t really need”.
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Behavior accentuated by social networks
And if this trend is particularly present among Generation Z, it doesn’t surprise Courtney Alev so much. “Social networks, on which young people are very present, help to stay informed, but they can also cause excessive stress depending on the type of content consumed. »
Thus, almost half of young Generation Z “would not be able to rationally save money”, a reality that has “serious consequences on personal finances” of his followers. And during the « Black Friday »which will take place on November 29, young Americans will have one more opportunity to confirm this trend.
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What are some of the psychological effects of doom spending during times of political uncertainty?
**Interview with Celeste Acevedo: The Rise of ‘Doom Spending’ Amid Election Anxiety**
**Editor:** Thank you for joining us today, Celeste. Recently, your TikTok video about “doom spending” struck a chord with many viewers. Can you tell us about your experience during the election and what led you to make that video?
**Celeste Acevedo:** Thank you for having me! On November 5, during the presidential election, I was feeling incredibly anxious. The uncertainty and tension surrounding the elections were overwhelming, so I decided to treat myself to some beauty products to help alleviate that anxiety. In my TikTok video, I talked about how those small purchases were comforting for me, and it seemed to resonate with a lot of people.
**Editor:** It sounds like you tapped into something many are feeling. According to Credit Karma, around 27% of Americans are engaging in “doom spending.” Why do you think this trend has gained traction, especially among younger generations like Gen Z?
**Celeste Acevedo:** I think it’s primarily linked to the overwhelming pressures we face today—whether it’s economic instability, student debt, or the political climate. For many in Gen Z, the concept of the “American Dream” feels increasingly out of reach. Doom spending, for us, becomes a way to reclaim some sense of control and joy in our lives, even if it’s temporary.
**Editor:** Courtney Alev from Credit Karma noted that politics can heighten stress levels, influencing the increase in spending to cope with those emotions. Do you believe that political events have a significant impact on how young people manage their mental health and spending habits?
**Celeste Acevedo:** Absolutely. Events like presidential elections can exacerbate our existing anxieties. Many young people are already dealing with uncertainty about their futures, so adding the stress of political outcomes can push some of us to find relief in small pleasures. It’s like a coping mechanism, even if it’s not necessarily financially sustainable.
**Editor:** It seems like this trend isn’t just a reaction to elections but speaks to broader systemic issues affecting young people today. What are your thoughts on the future, given the economic challenges and feelings of hopelessness that many express online?
**Celeste Acevedo:** It’s definitely troubling. The consistent rise in living costs, coupled with stagnant wages and soaring educational expenses, leaves many feeling hopeless about their futures. However, I think conversations about these issues are starting to happen more openly. By normalizing discussions of mental health and spending behaviors, we can hopefully find healthier ways to cope with stress and advocate for systemic changes.
**Editor:** Thank you, Celeste, for sharing your insights. It’s clear that while doom spending may provide temporary relief, the broader issues at hand need addressing for long-term solutions.
**Celeste Acevedo:** Thank you for having me! I hope we can continue these important conversations.
