Doom spending surges as Americans grapple with election anxiety

[UNITED STATES] As the 2024 presidential election approaches, a phenomenon known as "doom spending" has emerged, with a growing number of Americans turning to retail therapy to cope with the stress and uncertainty surrounding the political landscape. According to recent reports, the anxiety tied to the election is driving many people to make impulsive purchases, often as a way to regain control in an environment where they feel powerless. However, this spending habit comes with significant financial consequences, especially for younger generations already burdened with debt.

Doom spending refers to the practice of spending money impulsively in response to feelings of stress or anxiety, particularly when triggered by external events such as economic instability or political turmoil. This behavior is closely linked to doomscrolling, where individuals consume large amounts of negative news online, which exacerbates their sense of helplessness. In many cases, people turn to shopping as a way to distract themselves or seek comfort from their worries.

Courtney Alev, a consumer financial advocate at Intuit Credit Karma, explains: “Many Americans spend money as a coping mechanism when they’re feeling emotionally charged—whether they’re looking to relieve stress, want to get their mind off something, want that dopamine hit, or want to feel in control of something”. This notion of seeking control through spending is particularly relevant during high-stakes events like elections, where individuals may feel overwhelmed by the uncertainty of the future.

The 2024 Election and Its Impact on Spending Habits

The 2024 presidential election has become a significant source of stress for many Americans. A survey conducted by Qualtrics on behalf of Intuit Credit Karma found that 27% of respondents admitted to doom spending as a way to cope with their anxiety over the election. Furthermore, 40% reported that they were engaging in this behavior more frequently now than they did last year.

The election is not the only factor contributing to this trend. Broader economic concerns such as inflation, rising cost of living, and stagnant wages are also playing a role in driving people toward impulsive spending. However, unlike these ongoing issues, the election has a definitive end date—a looming deadline that can heighten feelings of urgency and stress as it approaches.

Alev notes that “it’s likely safe to say that many Americans don’t feel in control right now, especially as it relates to the fate of the election”. This lack of control can lead individuals to seek solace in material purchases, even if they cannot afford them.

Generational Differences in Doom Spending

While doom spending affects people across all age groups, younger generations appear particularly susceptible. The survey found that 37% of Gen Z and 39% of millennials reported engaging in doom spending recently—significantly higher than the overall average of 27%. These younger consumers are also more likely to be dealing with student loans and other forms of debt, making their financial situation even more precarious.

According to Alev: “Doom spending is especially concerning for young Americans who are already experiencing debt growth at faster rates than other generations”. The data from Credit Karma supports this claim, showing that average credit card balances for Gen Z and millennials have increased by 66% and 52%, respectively.

This trend highlights a troubling cycle: younger Americans are facing mounting financial pressures at a time when they are also more likely to engage in impulsive spending behaviors. As a result, they may find themselves sinking deeper into debt as they attempt to manage their stress through retail therapy.

The Role of Social Media in Doom Spending

Social media plays a significant role in fueling both doomscrolling and doom spending. Platforms like Instagram and TikTok are designed to keep users engaged for extended periods by serving them personalized content—including ads for products that may appeal directly to their emotional state.

Alev points out that “so many people are chronically online and on social media, ingesting content that may be heightening these feelings”. This constant exposure to negative news can create a sense of impending doom, which some individuals attempt to alleviate through shopping. At the same time, targeted advertisements make it easier than ever for users to make impulse purchases without fully considering the financial consequences.

Unfortunately, this cycle can be difficult to break. As Alev explains: “53% of Americans claim they feel like they’re constantly receiving bad news online,” which can lead them directly from doomscrolling into doom spending.

Financial Consequences of Doom Spending

While doom spending may provide temporary relief from anxiety or stress, it often leads to long-term financial problems. Many Americans simply do not have the savings or disposable income needed to support these impulsive purchases. According to the Intuit Credit Karma survey, 19% of respondents reported having $0 in savings. Additionally, 43% said they had given up on achieving certain financial milestones because they felt those goals were out of reach.

For those already struggling financially, doom spending can exacerbate existing problems. Credit card debt is one area where this behavior is particularly harmful. As individuals continue making purchases without considering their ability to pay off their balances, interest charges accumulate—leading them further into debt.

Younger generations are especially vulnerable in this regard. With student loans already weighing heavily on their finances, adding credit card debt into the mix can create an unsustainable financial burden. As Alev notes: “the Credit Karma platform shows that average credit card balances for Gen Z and millennials are up by 66% and 52%, respectively”.

Coping Mechanisms Beyond Spending

While doom spending may seem like an easy way to cope with stress in the short term, there are healthier alternatives available. Financial experts recommend finding non-monetary ways to manage anxiety during stressful times—particularly when external events like elections are beyond one’s control.

Some strategies include:

Exercise: Physical activity has been shown to reduce stress levels by releasing endorphins—the body’s natural mood elevators.

Mindfulness practices: Techniques such as meditation or deep breathing exercises can help individuals stay grounded during periods of heightened anxiety.

Limiting screen time: Reducing exposure to social media platforms can prevent doomscrolling and minimize feelings of helplessness.

Budgeting: Creating a budget allows individuals greater control over their finances by helping them track expenses and avoid unnecessary purchases.

By adopting these strategies instead of turning toward retail therapy during stressful times like elections or economic downturns—individuals can protect both their mental health and their wallets from further harm.

The 2024 presidential election has brought about unprecedented levels of anxiety among Americans—leading many toward destructive coping mechanisms such as doom spending. While this behavior may offer temporary relief from stressors related not only politically but also economically—it ultimately leaves individuals facing larger financial challenges down-the-road due largely-in-part-to increased credit-card-debt accumulation coupled-with-little-to-no-savings cushion available-to-them-at-present-time!

For younger generations already saddled-with-student-loan-debt—this-trend-is-especially-concerning-as-it-further-compounds-their-existing-financial-struggles!

However-there-are-healthier-alternatives-to-managing-stress-during-times-of-political-and-economic-turmoil! By-engaging-in-exercise-practicing-mindfulness-limiting-screen-time-and-adopting-budgeting-habits-individuals-can-regain-control-over-their-finances-and-mental-wellbeing!