Analysis: Spending money on luxury or frivolous purchases reflects how people respond when they feel anxious and uncertain about the future
Financial advice has rested on a simple assumption dor generations: if you work hard and save regularly, you will eventually achieve life's major milestones. A home, financial security, retirement and a comfortable standard of living were seen as achievable goals for everyone.
But for many younger adults today, that promise feels increasingly uncertain as the social contract is fraying. "Doom spending" has thus become a phenomenon. This is a term used to describe spending money on luxury or frivolous purchases as a way of coping with anxiety, uncertainty or pessimism about the future.
Unlike traditional impulse buying, doom spending is not simply about poor self-control or temptation and is often rooted in a deeper sense of hopelessness. If buying a home feels unattainable, retirement seems decades away or if economic shocks appear constant, then spending money on something enjoyable in the present can feel more rational than sacrificing for a future that appears increasingly out of reach.
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From RTÉ 2FM's Jennifer Zamparelli, fashion psychologist Dr Dion Terrelonge on doom spending
In this sense, doom spending is less about consumption and more about psychology. It reflects a growing tension between long-term financial goals and the realities many people believe they face, especially those still living at home.
Why do people do it?
Doom spending is driven by economic pessimism where many younger adults have come of age during a period marked by housing crises, rising rents, inflation and growing uncertainty about employment. Even those in relatively stable jobs often feel they are running hard simply to stand still.
Behavioural scientist Wendy De La Rosa argues that many people feel the traditional social contract has broken down. Previous generations were often able to buy homes, build wealth and achieve financial security on average incomes. Today, many younger workers see those goals moving further away despite working just as hard. This is reinforced by a blame culture between boomers and millennials, epitomised by the 'Avocado Toast' debate.
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This can create resentment and a loss of control. Spending money on travel, luxury goods or experiences offers an immediate sense of agency in a world that otherwise feels unpredictable.
Social media adds another layer. Platforms such as TikTok and Instagram expose people to carefully curated luxury lifestyles on a daily basis. The gap between people's expectations and their realities can feel wider than ever before. The result is a carpe diem mindset.
What does doom spending look like?
Doom spending does not always involve extravagant luxury purchases. For some people, it means booking another weekend away, upgrading technology more frequently than necessary, attending expensive events or spending heavily on dining out. In Ireland, travel appears to be one of the most common forms of doom spending among younger adults.
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Researchers and youth analysts have noted that experiences increasingly function as alternative markers of success. If home ownership feels out of reach, travel can provide a different sense of achievement, identity and fulfilment. The common thread is the motivation behind it and not the specific purchase itself.
Doom spending is often driven by the desire for immediate satisfaction, emotional comfort, or a temporary escape from worries about the future. Importantly, many people engaging in doom spending are fully aware of what they are doing. Research suggests that financial literacy alone does not necessarily prevent the behaviour. People may understand budgeting and saving perfectly well yet still choose spending as a way of managing difficult emotions.
Why does it feel good?
Spending money can generate a short-term emotional boost. Consumption often provides a temporary sense of pleasure and relief with psychologists describing this as a form of emotional regulation. The purchase itself becomes a way of soothing anxiety, stress or disappointment.
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Financial psychotherapists note that purchases often carry symbolic meaning, representing success, identity, belonging or progress. In uncertain times, these symbols can become particularly attractive because they provide reassurance in ways that future-oriented financial goals often cannot. The problem is that the emotional benefit is often temporary. Once the initial excitement fades, anxiety may return, creating a cycle where further spending becomes the next source of relief.
Why is it becoming more common?
Doom spending is not emerging in a vacuum reflecting broader economic and cultural trends. Housing affordability remains one of the most significant pressures facing younger adults. The gap between average earnings and house prices continues to widen, while 70% of 25-year-olds live at home with their parents.
There is also a cultural shift taking place. Younger generations increasingly prioritise experiences, wellbeing and personal fulfilment alongside traditional financial goals. While previous generations may have viewed discretionary spending as irresponsible, many younger consumers see it as a legitimate investment in quality of life. This does not necessarily mean people have abandoned long-term ambitions. Rather, many are trying to balance an uncertain future with a desire to enjoy the present.
For many younger adults, spending is not a rejection of financial responsibility. It is an attempt to find moments of certainty, pleasure and control in a world that appears to be moving the goalposts.
When does it become a problem?
Not all discretionary spending is doom spending, and not all doom spending is inherently harmful. Travel, hobbies, social activities and occasional indulgences can contribute significantly to wellbeing. The issue arises when spending becomes a primary coping mechanism for dealing with anxiety, hopelessness or stress. Research suggests that doom spending can create several long-term challenges, including increased debt, reduced savings, delayed financial goals and cycles of guilt and regret. Perhaps the most important distinction is whether spending is intentional or emotional.
Ultimately, doom spending highlights a broader social reality. It is not simply a story about consumer behaviour, but about how people respond when they feel the future has become less predictable. For many younger adults, spending is not a rejection of financial responsibility. It is an attempt to find moments of certainty, pleasure and control in a world that appears to be moving the goalposts.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ
