Election Anxiety Fuels Retail Therapy, Threatening Financial Stability
As the presidential election approaches, Americans are turning to retail therapy to cope with their anxieties, but this habit could have long-term consequences for their financial well-being.
Uncertainty Breeds Impulse Spending
A recent report by Intuit Credit Karma reveals that 27% of polled shoppers admit to “doom spending,” or splurging despite concerns about the economy and foreign affairs. This trend is more prevalent among younger generations, with 37% of Gen Zers and 39% of millennials engaging in this behavior.
Top Concerns Driving Doom Spending
The cost of living, inflation, and the presidential election are the top worries among doom spenders. More than a third of respondents say they can’t rationalize saving money due to feelings of uncertainty about the world and economy.
The Chronic Online Effect
Younger generations, who spend more time online and on social media, are more likely to engage in doom spending. This constant exposure to news and information can fuel anxiety, leading to impulse purchases as a coping mechanism.
The Financial Consequences
Doom spending can lead to significant financial woes. Credit card balances have reached $1.14 trillion, and 50% of cardholders carry a balance every month. The average annual percentage rate for credit cards is around 20.50%, making it difficult to pay off debt.
Breaking the Cycle
To avoid falling into the trap of doom spending, experts recommend creating a budget and setting aside money for discretionary spending. By taking control of finances, individuals can break the cycle of debt and anxiety.
Take Control of Your Finances
Don’t let election anxiety dictate your spending habits. Take a proactive approach to managing your finances, and make conscious decisions about your purchases. By doing so, you can avoid financial stress and build a more stable future.
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