Doom Spending And Girl Math: The Dark Side Of Financial Trends On Social Media

A new trend on social media, dubbed "doom spending," is gaining traction, glamorizing impulsive purchases and spending beyond one's means for quick, short-term satisfaction rather than long-term savings.

A behavior rooted in a sense of hopelessness among young people who fear they may never achieve financial goals like buying a home. In a world flooded with news about rising costs and economic uncertainty, it's no surprise that many turn to retail therapy for relief. But while it may offer temporary comfort, doom spending is far from a sustainable solution. Social media and the "buy now, pay later" industry fuel this cycle, making it easy to fall into.

A significant number of Gen Z (37%) and Millennials (39%) admit to splurging as a way to cope, based on a survey by Credit Karma, reported Fortune.

According to a report from Bankrate this year, a third of Americans have no short-term savings, and many young adults feel the financial pressure is higher than it was for their parents. In fact, 38% of Gen Z and Millennials believe it's harder to build wealth today due to economic challenges.

"Loud budgeting" is another money-related trend that has gained popularity on social media this year. It promotes openness about finances, encouraging individuals to discuss affordability when making plans with friends and loved ones. This trend emphasizes transparency regarding financial habits and has even made tracking spending feel more socially acceptable and "cool."

On the other hand, social media trends like "girl math," which describes the rationalizations young women use to justify unnecessary spending, have missed the mark. Women, in particular, face unique financial challenges, and such trends can reinforce harmful stereotypes instead of empowering financial independence.

While it's important to enjoy life, financial experts suggest that investing doesn't need to be complicated. Small, regular contributions—especially in tax-efficient options—can lead to significant long-term gains. The key is building a healthy investment habit without sacrificing life's little luxuries.

As we head into 2025, it's time to replace negative money messaging with encouragement, hope, and financial empowerment. Let's focus on building a resilient, informed financial future, one small step at a time.

Are You Paying More Than You Think?

In the investment world, transparency around fees is crucial, but many investors — especially Gen Z — are unaware of the costs they're paying.

While most platforms charge a percentage of invested amounts, Interactive Investor offers a flat fee subscription model to avoid fees eroding returns. Research shows many people, particularly younger generations, don't fully grasp these costs, similar to how doom spending can sneak up on them.

Just as Gen Z often turns to impulse spending to cope with stress, the lack of transparency around investment fees can lead to financial decisions that aren't in their best interest. Greater transparency can help Gen Z and others make informed choices, avoiding hidden costs that impact long-term wealth.

Money And Mindset: How Emotions Shape Our Investments

Our emotions can greatly influence how we handle money, especially when it comes to investing. For many, the ups and downs of the market stir up a range of feelings, and understanding these emotions can make a big difference in how we manage our finances. When emotions drive our decisions — like panic selling or overconfidence — it can hurt our long-term investment goals.

For younger generations, a lack of confidence could stop you from starting to invest. However, overconfidence might also be risky. Overestimating our knowledge might lead to trying to "time the market" or putting all our money in one place rather than diversifying. The key is staying invested and being patient, even when things feel uncertain.

Set Achievable Financial Goals

Money continues to be a significant source of stress for many Americans, according to the American Psychological Association. But adopting small, practical financial habits can provide some relief. Angela Fontes, vice president of policy and research at Financial Health Network, previously suggested setting aside even small amounts — such as $10 each week — as a way to begin saving without feeling overwhelmed.

Consulting with financial experts about high-yield savings accounts or contributing to retirement funds like Roth IRA or 401 K can also help build long-term wealth and curb impulsive spending. "Nothing happens overnight, but with consistency and a timely goal, it can be effective," Hanna Grichanik, a personal financial advisor with Northwestern Mutual, noted.

Create Barriers To Spending

Grichanik also suggests creating barriers to make impulse purchases more difficult. One way to do this is by removing saved credit card information from browsers or apps like Apple Wallet, ensuring that extra effort is required before making a purchase.

Another tip is setting up mobile banking notifications, which can add an "extra pinch of pain" when transaction alerts pop up.

Going back to using cash is another simple yet powerful tactic. With seamless payment methods like Apple Pay and Google Pay making spending quick and effortless, returning to physical currency can make you think twice before reaching for your wallet.

Adopt Anti-Stress Techniques

During times of stress, it's important to have alternatives to spending. Grichanik recommends creating a list of activities that help relieve tension—whether it's calling a friend, practicing mindfulness, or engaging in low-cost community activities like volunteering. These can help boost feelings of connection and reduce anxiety without straining your budget.

While indulging in retail therapy might feel comforting in the moment, the key is moderation. By relying on a variety of healthy coping mechanisms, people can manage stress without jeopardizing their financial future.