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Americans are 'doom spending' — here's why that's a problem (www.cnbc.com)

submitted 7 months ago by return2ozma@lemmy.world to c/news@lemmy.world

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[-] FlyingSquid@lemmy.world 106 points 7 months ago

It's not just 'doom spending.' There is next to nothing to do without spending money anymore. Pretty much the only free things anymore are city parks in good weather and libraries all year around. I have a 13-year-old. She's constantly looking for things to do. There's so little for her to do for free. She's in online school, so sometimes it's nice to get out of the house and go to a cafe to do her schoolwork. $15 minimum every time.

[-] MacGuffin94@lemmy.world 36 points 7 months ago

Idk about you but every activity is about $100/month too. I have kids in dance, $100/month per kid. Same with swim lessons (yes at the YMCA too). Looked into ice skating lessons and it's the same. I want my kids to be able to try things but there's no way we can afford to do more than one activity at a time and that's a stretch sometimes.

[-] foggy@lemmy.world 14 points 7 months ago

Pff. Piano lessons, guitar lessons... That's about $300 a month if they're going weekly.

[-] grue@lemmy.world 4 points 7 months ago

Well, shit. I was just about to start shopping for those, and now I've got sticker shock.

[-] FlyingSquid@lemmy.world 9 points 7 months ago

Yep. She has drum lessons once a week. That's all we can afford. And that's just her and a drum teacher, so it's not even like it's a ton of social interaction. I'd love to get her to do other classes and things like that, but we can't afford them.

[-] MacGuffin94@lemmy.world 13 points 7 months ago

Yeah and that's another barrier, start up cost. Instruments are expensive. I grew up playing hockey and if I want my kids to try it it's around $2000 just for one season.

[-] FlyingSquid@lemmy.world 4 points 7 months ago

We were (somewhat) lucky on that end. Her drum teacher sold us a simple drum set for $500 a couple of years ago and we've just added bits to it since then. Considering how much drum sets can cost, that was a bargain.

But we also had two incomes at the time. We're down to one now.

[-] foggy@lemmy.world 3 points 7 months ago

A snare drum can cost $500, easy.

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[-] SynAcker@lemmy.world 8 points 7 months ago

As a percussion instructor, it makes me happy that you are investing in your child's talent by getting them lessons!

[-] FlyingSquid@lemmy.world 2 points 7 months ago

Thanks! She really likes it. I think it's a good way for her to get aggressions out that she has trouble getting out in other ways.

[-] cybervseas@lemmy.world 4 points 7 months ago

Only $100/mo? You're lucky! My nephews' tennis and violin lessons are way more than that. Like multiple times more. You must live in a LCOL area.

[-] ConstipatedWatson@lemmy.world 7 points 7 months ago

And then, there's Lemmy that's free! 🧐

Just kidding, I'm not disagreeing with you

[-] FlyingSquid@lemmy.world 22 points 7 months ago

That's kind of the sad part really. She doesn't use Lemmy, but she basically spends her free time, when she's not doing other solo activities like drawing, on social media so she has a way to 'hang out' with her friends. In her case, she doesn't even get to see her friends in school anymore (pulling her out was very necessary and partially her choice). If she wants to spend time with friends and doesn't want to do it with parents hanging around, and I don't blame her for wanting that, pretty much the only free thing she can do at this time of the year with them is walk around the mall and window-shop. In other words, the main free thing for kids to do is wish they had money.

[-] netburnr@lemmy.world 11 points 7 months ago

In other words, the main free thing for kids to do is wish they had money.

To be fare it was the same way for me as a kid in the 80s

Luckily we still had alladins castle and Sega cities back then so we could at least play some games between wanting a cd or something from hot topic.

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[-] Sabata11792@kbin.social 100 points 7 months ago

“Every dollar you set aside will compound.”

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

[-] meat_popsicle@sh.itjust.works 13 points 7 months ago

It compounds their profits as they make more from the deposit than you! That’s what he really means.

[-] JDubbleu@programming.dev 5 points 7 months ago* (last edited 7 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

[-] Rice_Daddy@lemmy.world 1 points 7 months ago

These are some of the most basic features for the UK.

[-] JDubbleu@programming.dev 2 points 7 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 points 7 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 points 7 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 points 7 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 8 points 7 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 73 points 7 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 35 points 7 months ago* (last edited 7 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 points 7 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 30 points 7 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.

[-] be_excellent_to_each_other@kbin.social 45 points 7 months ago

Still, many continue to spend more and save less.

That's what happens when literally everything costs more than it used to.

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[-] MeowyNinhaj@lemmy.blahaj.zone 9 points 7 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.

[-] bedrooms@kbin.social 4 points 7 months ago

Do you even need an explanation

[-] ghostdoggtv@lemmy.world 1 points 7 months ago

Not doom spending, doomed spending

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this post was submitted on 30 Nov 2023

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