Table of Contents
Doom spending is spending money to cope with stress when the future seems uncertain or troubling, such as when the economic or political outlook appears grim. For example, a person might be feeling anxious about how high their housing costs are and what will happen in an upcoming election. To distract themselves from these worries, they might splash out on a special sushi dinner, concert tickets, or new clothes. The thinking here? “What’s ahead looks dicey, so I might as well enjoy myself now.”
If you can relate to this, read on to learn more about the causes of doom spending and how not to let it harm your financial standing.
Key Points
• Doom spending is when individuals spend money to cope with stress and anxiety about the future, such as a gloomy economic or political outlook.
• A significant portion of Americans, especially the younger Gen Z and millennial generations, engage in doom spending.
• Psychological triggers for doom spending may include stress, anxiety, impulse control issues, and societal and peer pressure.
• Doom spending can lead to increased debt and reduced savings, negatively impacting financial stability.
• Strategies to break the cycle of doom spending may include creating and sticking to a budget, setting up automatic savings transfers, and seeking alternative stress relief methods.
Understanding Doom Spending
Doom spending is a phenomenon in which people may overspend in response to stressful times. For instance, when the world is filled with political and economic uncertainty, consumers (especially younger ones) may feel there’s no point in saving. A voice inside their head may ask, “Why bother?” Instead, they decide to live in the moment and go shopping as a distraction and mood lifter.
An October 2024 survey by Qualtrics on behalf of Credit Karma found that 27% of all Americans engage in doom spending, and it’s especially prevalent among younger adults. In fact, 39% of millennials and 37% of Gen Zers admit they have spent money in this way.
Financial experts say these generations may be especially vulnerable to feelings of hopelessness and doom spending, as they came of age in a time of economic uncertainty and are living in an era with high housing costs, massive student debt, and considerable inflation (consumer prices rose more than 22% between January 2021 and January 2025). Many may find that they currently have a lot less in their bank accounts than they’d like.
While there is nothing wrong with occasional rewards, doom spending can result in credit card debt and a reduced ability to save for the future. According to a recent Financial Industry Regulatory Authority (FINRA) study, 26% of Americans say they spend more than they earn.
Recommended: What Are Fixed vs. Variable Expenses?
Increase your savings
with a limited-time APY boost.*
Psychological Triggers Behind Doom Spending
Here’s a closer look at some of the causes of doom spending.
Stress and Anxiety
Stress and anxiety can trigger doom spending, and there’s little doubt that they are rampant right now. According to the American Psychological Association (APA), many people in the U.S. have been negatively impacted by societal division, systemic isolation, a lack of emotional support, misinformation anxiety, and the rise of artificial intelligence. All of those issues can come together and create a feeling of future doom.
And according to a recent Nationwide Retirement Institute study, Gen Zers are leaning into spending despite having long-term financial concerns, with 17% saying that they’re spending more on leisure now because they may never be able to retire.
Impulse Control Issues
Shopping can bring joy in a few different ways. Research has shown that purchasing an item you desire can empower you with a sense of control. It can also flood your brain with dopamine, a feel-good neurotransmitter.
When people feel that the future is gloomy, they may crave that feel-good flood even more and, therefore, easily give in to impulse purchases. Spending money in this way can be a relief and a release. It’s a distraction that lets you treat yourself and temporarily escape your worries.
Societal and Peer Pressure
Social media can exacerbate doom spending by driving you to spend money to “keep up with the Joneses.” It can also lead to fear of missing out (FOMO) spending and you only live once (YOLO) spending.
Because the future seems cloudy and so expensive, you may not bother to plan for it. Instead, you might follow a friend’s, coworker’s, or social media influencer’s lead and spend money on the latest trendy purchase or experience. It can create a feeling of belonging and help you escape all the doom-driven anxiety.
Recommended: Financial Planning Tips for Young Adults in Their 20s
Consequences of Doom Spending
The consequences of doom spending can be mild or more significant but typically include the following:
• Blowing your budget: Additional spending can make it hard to stick to a budget. If you’re buying more nonessentials, you may come up short when it’s time to make your student loan payment. Or you might have to stop contributing to your retirement plan so you can make ends meet.
• Credit card debt: Credit card debt in the U.S. reached a record high in the first quarter of 2026 (hitting $1.25 trillion). That’s a whole lot of swiping and tapping going on, and doom spending may be a contributing factor. Shopping with credit cards can feel as if purchases don’t cost anything since no hard cash changes hands. But if you go overboard with doom spending, you may get an eye-watering bill. Given today’s ultra-high credit card interest rates (currently averaging 21%), it can be hard to get out from under credit card debt once it starts racking up.
• Ability to save: When you spend money on fun treats and impulse purchases to relieve stress and buoy your spirits, it may well be borrowed from money you were going to save. Whether those dollars were earmarked for an emergency fund, retirement account, the down payment on a house, or another purpose, doom spending can set you back in terms of your short- and long-term financial goals.
• Increased stress: Knowing that you’ve overspent can heighten the anxiety you are already feeling. Many people feel guilty about spending money, and a doom-triggered spending spree can create more worries about their financial future.
Strategies to Manage and Prevent Doom Spending
If you’ve been doom spending (or tempted to), these strategies can help you rein in the impulse.
Setting a Budget
A good budget helps organize your money and keep your spending on track. It can provide guardrails for how your income will be spent and saved. There are many different types of budgets, so you may need to experiment to find the method that works best for you. One popular approach is the 50/30/20 budget rule, which says that 50% of your take-home pay should go to needs, 30% to wants, and 20% to savings and/or additional debt payments. With a budget like this in place, you know just how much (30%) can go toward fun expenditures and can stick to that figure.
Once you determine how much you want to put toward savings each month, it’s a good idea to set up an automated transfer from your checking account to your savings account for the same day each month (perhaps right after you get paid). That way, the money gets whisked away and won’t sit there, tempting you to spend it.
You can set a budget and track your spending with pen and paper, or you might want to download a budgeting and spending app to your phone to simplify the process.
Self-Control Techniques
Being aware of what triggers you to doom spend can help you stop. For example, if you know you tend to shop on Sundays when you start feeling anxious about the week ahead and life in general, fill your calendar. You might set up a standing date to go walking or running with a friend or take on a volunteer gig or side hustle so you’re too busy to spend.
Many people impulse buy online or on social media. If you tend to overspend in this way, consider disabling one-click shopping. It’s also a good idea to delete your credit card details from your devices. That way, it won’t be so easy to mindlessly spend money while scrolling.
Recommended: How to Stop Spending Money
Seeking Professional Help
If you feel your doom spending isn’t yielding to the above techniques, you might want to enlist the help of a professional. A financial planner could help with budgeting, or a therapist could guide you to uncover and address the emotional aspects of your spending.
A financial therapist could also be helpful. They merge money know-how and an understanding of human behavior to resolve issues such as doom spending.
The Takeaway
Doom spending is a way of coping with stress by spending money. When you feel as if the world is uncertain and anxiety-provoking, you may find relief by shopping. But this can negatively impact your finances and create more money worries. Fortunately, there are several strategies that can help you control doom spending and stick to a budget.
The right banking partner can also help by giving you tools to help you track and grow your money.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What are the common signs of doom spending?
Common signs of doom spending include:
• Making impulsive purchases in response to feeling stressed or anxious about the future
• Feeling temporary relief or pleasure after spending but later regretting the purchase
• Frequently buying things you don’t need
• Neglecting to save for the future
How can I break the cycle of doom spending?
Here’s a look at some strategies that can help you break the cycle of doom spending:
• Create a monthly spending budget.
• Set up a recurring monthly transfer from checking to savings.
• Uncover your spending triggers and work to avoid or eliminate them.
• Practice mindful spending by pausing before each purchase and assessing if it’s truly necessary.
• Seek alternatives for stress relief, such as exercise or hobbies, to replace spending as a coping mechanism.
• Work with a financial advisor or psychologist/therapist.
Are there tools or apps to help manage spending habits?
Yes, there are a number of online tools and apps that can help you manage your spending habits, set up a budget, and monitor financial goals. Popular options include YNAB (You Need a Budget), Goodbudget, and EveryDollar. You might also check with your bank to see what tools they offer to track and organize your finances.
Photo credit: iStock/YakobchukOlena
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
1SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SOBNK-Q226-070