What Is Doom-Spending?
“Doom-spending” refers to a phenomenon that occurs when people spend more than they can afford to cope with stress. For example: concerns about the economy and foreign affairs, according to a study conducted by Qualtrics and Credit Karma
What’s Happening and How Rellevate Can Help
Nearly all Americans (96%) are concerned about the current state of the economy and two-thirds claim it’s giving them anxiety. Some of the most severe stressors include inflation, the inability to afford necessities and not having enough money to spend on things that bring happiness
As a result, Americans who don’t have enough money to ‘pay bills, save and have fun’ are forced to skip the saving step and splurge on shopping sprees or travel to uplift their mood.
Younger Generations Are Leading The Doom-Spending Charge
The Credit Karma study found that over a quarter (27%) of all Americans doom-spend to cope with stress, including 35% of Gen Z and 43% of Millennials
“Many young people are discouraged right now and feel they’re owed something, and that their generation has been treated unfairly by coming to age in a period marked by economic instability, stagnant wages and increasing living costs, which can all lead to heightened financial anxiety”
-Cameron Burskey, Managing Director, Cornerstone Financial Services
The Bottom Line: Doom-Spending can go from a coping mechanism to a self-fulfilling prophecy
Earned Wage Access Can Help Your Employees Avoid Doom-Spending
Rellevate’s Digital Bank Account featuring Pay Any-Day can help your employees avoid moments of financial stress that could trigger a doom-spending event
Getting paid at the end of every shift is proven to increase morale, as it gives employees an ‘end of shift gratification’ mindset and the ability to manage their money, pay their bills on-time and save more money
Earned Wage Access is currently one of America’s fastest growing employee benefit’s and is proven to help employees:
✓ Reduce job-related financial stress by up to 76%
✓ 32% increase in meeting basic needs
✓ Increase employee morale by 72%
Rellevate’s Revolutionary Digital Bank Account, featuring Pay Any-Day, is a zero-cost employer / employee benefit
