Some Americans are spending more money due to the presidential election, according to a report.

• A recent report by Intuit Credit Karma reveals that approximately 27% of surveyed shoppers are engaging in "doom spending," which involves spending cash despite economic and foreign affairs concerns.
• According to Ted Rossman, a senior industry analyst at Bankrate.com, the urge was "spurred by the pandemic."
• If you plan to "doom spend" anyways, here's what to do.

The presidential election is causing anxiety among voters, and their wallets are feeling the strain due to retail therapy.

A recent report by Intuit Credit Karma reveals that approximately 27% of polled shoppers engage in "doom spending," or spending cash despite economic and foreign affairs concerns. This behavior is more common among younger generations, with 37% of Gen Zers and 39% of millennials admitting to it.

Over 60% of Americans surveyed in late October are more concerned about the world and economy than they were a year ago, according to a site poll of 1,001 U.S. adults.

The report found that the top concerns among doom spenders are the cost of living (55%), inflation (43%), and the presidential election (28%).

According to Intuit Credit Karma, over 36% of respondents struggle to justify saving money due to concerns about the global and economic future. This percentage rises to 47% among Gen Z and 43% among millennials.

Shoppers want a 'sense of control'

Consumer financial advocate Courtney Alev at Credit Karma stated that shoppers may be seeking a sense of control during a time when it feels like everything is beyond their control.

Young people are most affected by "doom spending" because they spend a lot of time online, according to Alev.

According to Credit Karma, 70% of Gen Zers and 52% of millennials identify as "chronically online."

Alev stated that if you're currently online reading about global events, you're more likely to become stressed and seek coping mechanisms.

The "vibecession" is impacting investors during the presidential election.

According to a 2023 Bankrate.com survey, shoppers who admit to making impulse purchases influenced by social media spent an average of $754 annually.

According to Ted Rossman, a senior industry analyst at Bankrate, the urge was "spurred by the pandemic."

Younger shoppers often feel that "the odds are against them" when it comes to shopping.

Rossman stated that young adults' financial struggles are often caused by their student loan balances, making it increasingly difficult for them to afford to buy a home or even rent their own place.

'It's a tough cycle to break'

Large credit card balances can result in significant financial problems. The Federal Reserve Bank of New York reported that credit card balances reached $1.14 trillion in the second quarter of 2024.

A recent Bankrate survey revealed that 50% of credit card holders have a balance every month.

Rossman stated that the current share that pays in full is the lowest in four years.

A Bankrate study found that approximately six out of ten individuals with credit card debt have been carrying it for at least one year.

Rossman stated that breaking the cycle is difficult, particularly with high interest rates for everyday cards.

The average annual percentage rate for credit cards has decreased from a record high of 20.79% in August to around 20.50%, according to Bankrate.com. Meanwhile, Bankrate found that the average APR for retail credit cards is 30.45%, which is a high.

The holiday shopping season is approaching, and with it comes the election-related doom spending. Approximately 20% of Americans plan to accrue credit card debt during the festive season to cover their celebrations and responsibilities, as per Morning Consult.

Last year's holiday debt is still being paid off by 28% of 2023 holiday shoppers, according to NerdWallet's survey of 2,079 adults in September.

Gen Z and millennials are experiencing the fastest growth in credit card debt, according to Alev.

Since March 2022, when the Fed began raising interest rates, Credit Karma data shows that Gen Zers' credit card balances have increased by 66%, while millennials' balances have grown by 52%.

The more debt you accumulate, the more challenging it will be to save money, she stated.

Alev stated that the combination of these two things has a significantly negative impact on the lives of young consumers.

'Take the control back'

"Rossman stated that people often experience the highest levels of anxiety when they feel powerless, but regaining control can be achieved by creating a plan."

Rossman advised to allocate space in your budget for potential spending temptations.

""Take the impulse out of spending by setting the money aside ahead of time," he advised."

Rossman advised setting the money in a separate high yield savings account to obtain a better return.