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‘We’re doomed anyway’: young people disheartened about the future are splashing out on the present
Young Australians disheartened about the future are spending on small treats like matcha instead of saving, according to brand strategist
Key points
- Healey says the "little treat" culture has grown because traditional milestones such as home ownership feel out of reach.
- The Housing Industry Association says Australian housing affordability has reached its worst on record.
- Healey says doomspending is perhaps a more advanced version or symptom of the same underlying feeling about the future.
Why it matters. Spending patterns driven by pessimism about housing and job security may mean fewer savings for deposits, as rising borrowing costs have eclipsed the recent retreat in prices.
Young Australians disheartened about the economy are spending on small treats instead of saving, brand strategist Eugene Healey told the Guardian. Healey said the "little treat" culture has grown because traditional milestones feel out of reach, citing a median house price of $1.1m across Australia's capital cities, according to Cotality research.
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‘We’re doomed anyway’: young people disheartened about the future are splashing out on the present
An Tran treats herself to experiences like concerts and movie tickets. The 21-year-old Sydney law student, who is working towards paying her tuition fees, says many of her friends spend their spare money on matcha, Labubu toys and trending makeup items. Tran, who moved from Vietnam two years ago, says she appreciates what she has in Australia but can understand why young people like her are concerned about the future. “We feel like we’re doomed anyway so why should we save?” she says. Young people feeling disheartened about the economy are choosing to spend their money in the present – regularly buying “little treats” such as takeaway coffees or even “doomspending” if it feels like there’s no point saving for the future. “If we believe in the future, we are much more likely to be able to defer gratification in the pursuit of it,” says brand strategist Eugene Healey. Healey says “little treat” culture – a pattern of consumer behaviour where people, especially younger people, buy “affordable, everyday luxuries” like matcha or lunch – has come about because traditional milestones feel out of reach. The rationale works like this: buying an $8 matcha five days a week for 48 weeks works out to $1,920 a year. Even if you saved that money, the median house price in Australia’s capital cities combined is now $1.1m and the median unit price $738,778, according to Cotality research publis.