As financial fears mount, some Americans are "doom spending," or spending money despite their economic and geopolitical concerns, as a way to cope with stress.
  • Sabata11792@kbin.social
    1058·
    11 months ago

    “Every dollar you set aside will compound.”

    Out of touch as fuck. If the fees don’t take it, the inflation will.

      • JDubbleu@programming.dev
        6·
        11 months ago

        Use a brokerage like Fidelity as your bank instead of these fuckers at Chase and BofA who don’t respect you despite you giving them your money.

        Doesn’t have to be Fidelity, but in the current day if you’re not getting the following from your bank you’re getting fucked:

        • $0 minimum balance, $0 in account fees
        • No overdraft fees
        • Minimum 4% APY on savings, minimum 2% APY on checking
        • ATM fee reimbursement
        • Instant transfers between your own accounts
        • Access to direct deposits even while they’re still pending
          • JDubbleu@programming.dev
            1·
            11 months ago

            They’re pretty basic here too. That doesn’t mean there aren’t scummy ass banks that still don’t offer them, and rely on the company name to get customers. Many old banks don’t offer most of this unfortunately, and most people don’t go looking for new banks often and get screwed.

            • Rice_Daddy@lemmy.world
              1·
              11 months ago

              Basic finance is easily one of the most important life skills anyone can pick up, right ght besides cooking and understanding when people might not have your best interest in mind.

        • Kiernian@lemmy.world
          1·
          11 months ago

          Where does one get something like this in the U.S.?

          no min balance, no fees, interest on checking?

          I was under the impression that didn’t exist.

          • JDubbleu@programming.dev
            1·
            11 months ago

            Fidelity is who I use since they also have my portfolio, but SoFi and many others also provide similar services.

    • QuarterSwede@lemmy.world
      123·
      11 months ago

      It’s not out of touch. The problem is we do a shit job of teaching people the basics of budgeting and how to save in our culture.

  • rockSlayer@lemmy.world
    752·
    11 months ago

    This banker seems like someone that doesn’t understand our economic realities. Nothing worth saving for is in reach, everything is more expensive, we’re saddled with a cumulative trillion dollar debt, and most of us don’t even make enough money to save money. Of course I’d rather live in the moment and make the people around me happy.

  • Very_Bad_Janet@kbin.social
    383·
    11 months ago

    It’s basic Econ 101. People buy more in high inflation periods because they know the same goods will cost more in the future.

    ETA: I myself have bought sneakers in future sizes for my kids as well as household consumables and toiletries (meaning, not gifts) this Black Friday.

    • billy_bollocks@sh.itjust.works
      12·
      11 months ago

      You make a good point about people who are informed or educated enough to actually recognize that. Ignoring the future vs present worth of money aspect.

      There are a shit ton of folks out there who don’t know what inflation actually is. I’d say they probably fall into the doom spending category.

  • SamsonSeinfelder@feddit.de
    16·
    11 months ago

    From the article (saved you a click):

    KEY POINTS

    • Nearly all Americans are concerned about the current state of the economy.

    • Still, many continue to spend more and save less.

    • “Doom spending” may be one way to cope with stress as economic fears mount, however, it comes at the expense of your financial well-being.

        • FuglyDuck@lemmy.worldEnglish
          241·
          11 months ago

          Eh, given the sales that go on black Friday, people may have been saving for large but necessary purchases. That black Friday was as big as it was is also a sign that people are trying to save a buck.

          I know I picked up a washer and dryer, and not much else

          • Ranvier@sopuli.xyz
            21·
            11 months ago

            You may be right, October retail sales growth was weaker and something like 2.6% growth (just under the 3.2% inflation) as described in articles linked by the posted article. Forecasts are for all holiday spending to reach record levels this year beyond just what inflation would suggest. When the year finishes there will be more concrete data beyond just black Friday to find out for sure.

            I think doom spending is a reasonable idea.

            I think another piece is increasing wages. Those increased on average year over year in October by 5.2%. So many people probably feel individually they can afford the increased prices and buy even more on top. Though if you’re in an industry or situation where you haven’t been able to leverage the high labor demand and low unemployment for increased wages like most across the entire economy have been able to, you’re probably hurting.

            • FuglyDuck@lemmy.worldEnglish
              31·
              11 months ago

              I think, if the data is granular enough, you could see it in what people were buying. Of half the sales were in DVDs and grown-up-toys, then yeah, it’s doom spending.

              But I doubt anyone whose pay check to pay check or even remotely close just went out and drop loads of cash on things that weren’t either vaguely needed or budgeted into savings.

              Outside of Black Friday, spending increases are accounted for by increase in food and energy inflation- not to mention the cost of debt- especially revolving debt.

              Also consider, that the 5% gains you cite probably include people that don’t really need them. The rest of us see a net loss compared to inflation- maybe not yoy, but compared to the last three years certainly. Rememebe the whole point raising interest is to both reduce demand and reduce increases in pay. (After all, it’s all the consumer’s fault and not at all greedy corporations fixing the prices of eggs… which are pretty much used in every kitchen.)

              This year no toys for me- rather it was very much needed appliances.

        • BraveSirZaphod@kbin.social
          81·
          11 months ago

          I think there’s a real argument to be made in favor of the doomspending hypothesis, particularly with younger millenials and housing. If you accept that you’re simply not going to be buying a house any time remotely soon, the temptation grows to just say fuck it and go buy some nice stuff or go on a trip.

          • Ranvier@sopuli.xyz
            5·
            11 months ago

            Speaking with an n of 1, I’ve certainly noticed I tend to spend more impulsively when stressed. Definitely a theory.

  • MeowyNinhaj@lemmy.blahaj.zone
    8·
    11 months ago

    I spent much of my savings on random computer parts because inflation is so bad anyway it feels worthless. And the future is bleak. I enjoy the fancy monitors ect now a lot more than an extra number in the bank they just use as loan collateral for someone else.