What to know
- Nearly 54 per cent of Canadians admit to making purchases to relieve negative feelings about the world or their finances.
- Doomspending is most common among 35 to 54-year-olds.
- Top triggers include stress and uncertainty about the future, leading to impulse purchases such as takeout, clothing, and streaming services.
- Many Canadians feel regret after doomspending, with 37% reporting remorse over emotionally driven purchases.
From splurging on takeout to participating in retail therapy, data shows many Canadians are doomspending to find quick relief from life’s stress.
In a period of wildfires and economic uncertainty, Canadians are looking for a little relief through a phenomenon called ‘doomspending.’
What is doomspending?
According to NerdWallet Canada, doomspending means buying things you don’t need because the future feels uncertain, or saving feels pointless.
This phenomenon might seem like a Gen Z trend, but the study reveals the biggest spenders are between the ages of 35 and 54.
“Doomspending is easy to picture as a few big splurges… Taken together with the leading motivation — a lift in mood or distraction from stress — the categories suggest that doomspending often involves accessible, immediate comforts,” Jordan Lavin said in a press release.
What are Canadians doomspending on?
Canadians are doomspending on late-night takeout orders after a trip to the grocery store, a concert ticket during a bad week to promise a better one ahead — all purchases to cheer up or bring some relief from a stressful or long day.
In the past six months, 66 per cent of Canadians have spent money on something they wanted but did not need, and 45 per cent did it more than once.
Among those spenders, 54 per cent shared that they doomspend to lift their mood or as a distraction from their stress, and 47 per cent to have something to look forward to. But 21 per cent doomspend because an uncertain future influenced their decision.
