Woman explains why young workers are ‘doom spending’

‘We can’t afford anything else,’ says TikTok user

A woman has explained how young workers can afford “nice things”.

In a viral video, TikTok user Maria Melchor (@firstgenliving) explained to viewers why young people are spending their money on luxury goods and traveling to far-off destinations amid a looming recession. The phenomenon is referred to as “doom spending” - when people are disillusioned by the idea of being able to afford basic hallmarks of adulthood, such as a house, that they resort to spending their money on “nice things” to keep them going through rough financial times.

“When older people ask me how young people are affording nice things that they wouldn’t even buy for themselves,” Melchor said. “I tell them it’s because we can’t afford anything else.”

“Homeownership or starting a family is so out of reach that we’re using that down payment or kid money on whatever it is we can’t afford that’ll bring us a semblance of the kind of adulthood we were promised,” she continued. “When houses are a million dollar plus and an older couple will likely outbid us anyway, we’re gonna relinquish any lingering delusions about homeownership.”

She jokingly added that younger generations are choosing to “give our dogs the most enriched puppyhood they can have.”

Since the video was posted on TikTok one week ago, it has garnered more than 900,000 views and 130,000 likes on the platform. In the comments, many viewers commented that they’ve been “doom spending” to cope with their bleak financial futures.

“We’re all doom-spending now,” one person wrote.

“Future is not guaranteed, it’s crumbling before our eyes,” another added. “Enjoying what we have while we can is the way to go.”

“My mother asking me when I’m gonna stop travelling and buy a house,” someone else admitted. “I can’t afford a house but I can travel.”

The comment section’s rampant pessimism is in line with what many Gen-Zers and zillennials reportedly believe. A quarter (25 per cent) of Gen-Zers doubt they can afford to retire and less than half believe they would ever own a home, according to a 2022 study from McKinsey.

Some people in the comment section explained how the financial realities that young people currently face aren’t the same as what their parents had to deal with back in the day. One person wrote: “Houses are legit $1m+ and our families bought those same houses for less than $200k, make it make sense!”

Meanwhile, some users pointed out that “doom spending” could be a part of a marketing ploy to trick young people into buying more products and experiences they don’t need. According to theEconomist, young people were found to be more likely to purchase products they saw on social media and use pay-in-installment options.

“This is partially true, but we also need to acknowledge that we have a generational problem of rampant consumerism,” one user noted.

Another person wrote: “Hearing it like this it feels a bit by design. No future to invest in so we spend our present consuming... We are more marketable than ever.”