A PERILOUS PRACTICE

Gen-X, Millennials, and Gen-Z engage in 'doomed spending,' rejecting traditional financial planning for immediate gratification through instant expenditures, finds a survey

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Adoha of Saint Kabir, ‘Kaal Kare So Aaj Kar’ (What you plan to do tomorrow, do it today), has taken on a different meaning for a segment of consumers in recent years.

Post the Covid-19 pandemic, especially in the US, there is a growing trend among consumers in Gen-X (born between 1965 and 1980), Millennials (born post-1981), and Gen-Z (born post-1998) to spend more than they earn, forsaking the age-old tradition of planning and saving for the future. This evolving trend is referred to as “Doomed Spending.”

Let’s dig into this new trend in greater detail.

THE PREVAILING PATTERN

To some extent, an individual is a product of their time, with time playing a key role in shaping choices. Post the pandemic, a tectonic shift has occurred in the way people live and think, particularly in their vision for the future.

Among the various effects of the pandemic, a notable change is the heightened focus on living in the present rather than worrying about the future, driven by a more personal and intense understanding of uncertainty.

In this context, a segment of consumers from Millennials, Gen-Z, and Gen-X appears to have relinquished a focus on their economic future. They are choosing to live more for the present, spending rather than saving for future needs such as buying a house, starting a family, or planning for post-retirement, considering these investments as fruitless.