In the face of economic turmoil and political conflict, why not benefit from the finer things in life, like a Chanel handbag or fancy skincare products?
At least that is what Millennials and Generation Z appear to think. More than ever, younger generations are spending their savings on luxury goods, Bloomberg reported on Wednesday. According to data from personal finance company Credit Karma, this activity, often known as “doom spending,” is practiced by about 43 percent of millennials and 35 percent of Gen Z. That’s higher than the 27 percent of Americans overall who spend more to address their anxiety. economy and foreign affairs.
“It’s a way to cope, although it’s not the healthiest way,” Courtney Alev, a consumer finance spokeswoman at Credit Karma, told the news site.
Historically, trends show that when economic times get tough, people save more, younger generations turn it on its head. With high costs of living, massive student loan debt, and a troublesome job market, many people don’t think they’ll ever have the opportunity to purchase a property, have children, or retire with a drained checking account. Because all of it seems out of reach, money that would have gone toward traditional trappings of maturity is now simply spent.
Adrian Sega, a 26-year-old personal care assistant in New York, told Bloomberg that he spent the last of his emergency savings on a knockoff Burberry bag from the movie Inheritance. His funds also went toward skincare items, a polka-dot coat and a pretend Birkin bag – every little thing he described as “needed right now.” Nia Holland, a 24-year-old student, exhausted her savings to purchase an old Chanel handbag.
“The economy sucks, global warming, constant political and social unrest around the world,” Holland told Bloomberg. “It’s just easier to spend money on things that will bring immediate fulfillment.”
The trend is not latest, as Hamilton College economics professor Stephen Wu published research on spending back in 2004. He found that when people feel that luck or other external aspects determine their financial success, they’re less likely to avoid wasting for the long run. And now, after the pandemic and the Great Recession, this sort of fatalism has turn into much more common, he told Bloomberg.
If you’re feeling just like the world is ending, not less than you’ll be able to leave with a flowery bag on your shoulder.
Credit : robbreport.com
