Kelsea Palm was feeling out of sorts as the presidential election was approaching. So, she did what many Americans do when they\u2019re feeling anxious: She went shopping.<\/p>\n\n\n\n
The Wheaton College senior and her friend hit shops in Massachusetts the weekend before Election Day, and while Palm prides herself on shopping responsibly, she wound up impulse-buying a purse to ease her stress.<\/p>\n\n\n\n
\u201cIt was a new thing that made us feel like we had some sort of control over our lives. We can vote, but what else can we do? We can get a bag that\u2019ll make us happy,\u201d she told CNN.<\/p>\n\n\n\n
Palm is among the increasing number of consumers who cope with feelings of anxiety by \u201cdoom spending.\u201d<\/p>\n\n\n\n
Doom spending, or the practice of spending money to soothe fears about broader issues like politics or the economy, <\/strong>shows up everywhere from YouTube and TikTok videos to Reddit to personal finance discussions and data in surveys.<\/p>\n\n\n\n Gen Z and millennial consumers are also more likely to say it is better to treat themselves now rather than hold off for a future \u201cthat feels like it could change at any moment,\u201d according to an Axios Vibes survey<\/u><\/a> in June conducted by The Harris Poll.<\/p>\n\n\n\n While this kind of catharsis might work to temporarily allay worries, experts say doom spending poses a danger to consumers\u2019 long-term financial health.<\/p>\n\n\n\n \u201cWe\u2019re not always rational when it comes to our emotions, when it comes to our money,\u201d said Courtney Alev, consumer financial advocate at Credit Karma. \u201cIt\u2019s really easy to bury our heads in the sand and look for those quick dopamine hits when we\u2019re feeling anxious or stressed.\u201d<\/p>\n\n\n\n Alev says a third of Americans across all generations have a hard time rationalizing <\/strong>saving money due to feelings of uncertainty about current and future affairs, and a persistent sense of economic pessimism is partly to blame.<\/p>\n\n\n\n The economy President-elect Donald Trump is set to inherit is strong on paper<\/u><\/a>, with a low unemployment rate and a projected economic growth rate better than other G7 economies.<\/p>\n\n\n\n Inflation has largely <\/strong>been tamed, too. But a lower rate of inflation doesn\u2019t mean everyone is feeling its effects \u2013 and it doesn\u2019t mean prices have come down. Only 37% of Americans said they approved of the economy, according to a CNN poll<\/u><\/a> published in February.<\/p>\n\n\n\n Frustration surrounding the economy also played a major role in Trump\u2019s victory as voters repeatedly cited it as their top issue, with 54% saying they trusted Trump to handle it better than his opponent Vice President Kamala Harris, according to a Gallup survey<\/u><\/a> published in October.<\/p>\n\n\n\n Grocery costs and housing prices \u2014 two cornerstones of most consumers\u2019 budgets \u2014 also continue to remain high, which translate into a less-than-rosy perception of economy.<\/p>\n\n\n\n \u201cInflation is slowing down, but for many people, what they see on the shelf in the grocery store is their reality,\u201d said Sertan Kabadayi, a marketing professor at Fordham University\u2019s Gabelli School of Business. \u201cSince those prices are higher than last year, they still think that the economy is not in good shape and that the economy is getting worse.\u201d<\/p>\n\n\n\n That financial gloom is powering doom spending and, in turn, driving up credit card debt. An August survey by Bankrate showed that half of American cardholders carry credit card debt from month-to-month, spurred on by sky-high interest rates before the Federal Reserve cut rates in September and again this week<\/u><\/a>.<\/p>\n\n\n\n And, in the third quarter this year, credit card delinquencies surpassed pre-pandemic levels for the first time, according to a report from the Federal Reserve Bank of Philadelphia<\/u><\/a>.<\/p>\n\n\n\n Beyond the economy, experts say that internet habits play a significant role in driving doom spending, especially for younger consumers.<\/p>\n\n\n\n More than half of Americans say they feel like they are constantly receiving bad news online, and it\u2019s affecting how they spend their money, Bankrate data shows<\/u><\/a>.<\/p>\n\n\n\n \u201cWhat you\u2019re following and the messages that you are receiving online can make you feel worse, increase your anxiety, and make things feel more dire than they are,\u201d said Aja Evans, a financial therapist and author of \u201cFeel Good Finance.\u201d<\/p>\n\n\n\n She says \u201cinformation overload\u201d from online media paired with influencer culture and product advertisements can make consumers feel more tempted to open their wallets.<\/p>\n\n\n\n \u201cWhen you\u2019re in the midst of scrolling, you might think: \u2018You know what? Things are just really bad. I\u2019m going to feel better if I purchase,\u2019\u201d Evans said.<\/p>\n\n\n\n While the results of the election have already been decided, news about it hasn\u2019t stopped.<\/p>\n\n\n\n \u201cWe expect a lot of young Americans to spend much of this next week online, scrolling social media, as they continue to digest election-focused content. Doing so could lead to even more charged feelings and drive further spending,\u201d Alev said.<\/p>\n\n\n\nWhy are we doom spending?<\/strong><\/strong><\/h2>\n\n\n\n
How does the election factor in?<\/strong><\/strong><\/h2>\n\n\n\n