A Zillennial finance coach has lifted the lid on why young people are ‘doom spending’ their money on the finer things in life to cope with the turbulent economy.
Maria Melchor, 27, from New York City, is the founder of FirstGenLiving, a company that aims to help first-generation professionals achieve generational wealth through ‘values-based budgeting and banking systems.’
The content creator, known as @firstgenliving, has insight into how young adults ‘can afford nice things’ as a Zillennial, a cohort of people who are on the cusp of the millennial and Gen Z generations.
‘When older people ask me how young people are affording nice things that they wouldn’t even buy for themselves, I tell them it’s because we can’t afford anything else,’ she began her recent video.
Finance coach Maria Melchor, 27, from New York City, went viral on TikTok after explaining how young millennials and Gen Zs are ‘affording nice things’
‘Homeownership or starting a family is so out of reach that we’re using that down payment or kid money on whatever it is we can afford that will bring us a semblance of the kind of adulthood we were promised,’ she said (stock image)
The Yale graduate explained that the ‘American Dream’ no longer exists for younger millennials and Gen Zers who aren’t able to buy a home and start a family in the current economy.
The harsh reality of their financial limitations has them blowing money on whatever makes them happy at the moment, whether it be lavish trips, fine dining, or pricey Taylor Swift tickets.
‘Homeownership or starting a family is so out of reach that we’re using that down payment or kid money on whatever it is we can afford that will bring us a semblance of the kind of adulthood we were promised,’ she said.
‘When houses are a $1 million-plus and an older couple will likely outbid us anyway, we’re going to relinquish any lingering delusions about home ownership and instead use that money to give our dogs the most enriched puppyhood they can have.’
A whopping 96 percent of Americans are concerned by the current state of the economy, according to a report by Intuit Credit Karma that was published in November.
More than a quarter of those surveyed are doom spending to cope with their financial anxiety, a phenomenon that is most common among millennials and Gen Z.
‘Much like doom scrolling, we’re seeing people mindlessly shop to soothe concerns about the economy and foreign affairs, which could take a toll on their financial wellbeing,’ explained Courtney Alev, Credit Karma’s consumer financial advocate.
A recent Prosperity Index study by Intuit found that 73 percent of Gen Z would rather spend money to have a better quality of life now than save for the future.
The younger generations’ financial limitations have them ‘doom spending’ money on whatever makes them happy at the moment, whether it be lavish trips, fine dining, or concert tickets, according to Melchor
The finance guru’s sentiment struck a chord with many young millennials and Gen Z users who could relate to living in the moment financially
Melchor’s video has been viewed 1.4 million times and has received more than 1,600 comments since it was posted on December 12.
The finance guru’s sentiment struck a chord with many young millennials and Gen Z users who could relate to living in the moment financially.
‘We’re all doom spending now,’ one person responded.
‘My mother asking me when I’m gonna stop traveling and buy a house. I can’t afford a house but I can travel,’ someone else shared.
‘It’s also just about general happiness, [because] certain things are out of reach,’ another explained. ‘Also the future doesn’t feel stable, so we enjoy while we can.