Title:
Doom Spending and Financial Health Among Millennials and Gen Z in the Digital Era

Authors:
Husnayetti*, Irma Novida, Tri Budi Astuti, Junarti, Arief Wahid, Indonesia

Abstract:

Doom spending, defined as emotionally driven consumption under economic uncertainty, has emerged as a distinctive behavioral phenomenon among younger generations in the digital era. This study examines the effect of doom spending on financial health—measured through debt management and savings behavior—among undergraduate Millennials and Gen Z in Indonesia, while analyzing the roles of financial literacy and social media interaction. Using survey data from 80 undergraduate students and Partial Least Squares Structural Equation Modeling (PLS-SEM), the results indicate that doom spending has no significant direct effect on debt management (β = 0.105; p > 0.05) or savings behavior (β = 0.214; p > 0.05). In contrast, financial literacy has a strong positive effect on both debt management (β = 0.585; p < 0.001) and savings behavior (β = 0.521; p < 0.001). Doom spending is significantly influenced by social media interaction (β = 0.716; p < 0.001), although social media does not directly affect financial health outcomes. These findings suggest that doom spending functions primarily as a psychosocial coping behavior rather than an indicator of poor financial capability. The study contributes to behavioral finance literature by clarifying the non-destructive nature of emotional consumption when supported by adequate financial literacy, with implications for financial education and digital platform design.

DOI: https://doi.org/10.51505/IJEBMR.2026.1018