Climate Anxiety Is Wrecking Your Budget. Here’s How to Fix It

By GreenFi Editorial Team

If you’ve ever caught yourself thinking “Who even knows if retirement will exist?” while adding something to your cart, you’re not alone. There’s a name for it: doom spending.

And it’s everywhere. According to a 2025 survey from Intuit Credit Karma, 96% of Americans are worried about the economy, with more than 25% saying they cope by spending impulsively.^¹ Gen Z is especially susceptible. Roughly 41% of Gen Z respondents admit to doom spending.^²

But here’s the part nobody’s talking about: a lot of this anxiety is rooted in climate. And the link between feeling powerless about the planet and sabotaging your own finances is stronger than you’d think.

Climate anxiety and your wallet are connected

According to Deloitte’s 2024 Gen Z and Millennial Survey, 62% of Gen Zs and 59% of Millennials reported feeling anxious about the environment in the past month.^³ That’s not background worry. That’s a persistent feeling that the future is unstable.

When the future feels unstable, saving for it starts to feel pointless. That’s the core psychology behind doom spending: if things are falling apart anyway, why not get something nice right now? It’s not irrational. It’s a coping response to a world that feels out of your control.^⁴

A recent academic study classified doom spending as a “psychosocial coping mechanism” rather than simply reckless behavior.^⁵ People aren’t bad with money. They’re stressed about the world, and their spending reflects it.

The doom spending trap

Doom spending creates a nasty cycle. You feel anxious about the climate. You spend impulsively to feel better. The temporary relief fades, replaced by financial stress. Now you’re anxious about the climate and your money. Repeat.

The 2025 Wells Fargo Money Study found that over three-quarters of Americans are cutting back on spending, up 9% from the prior year.^⁶ But for many younger consumers, the instinct to cut back competes with the urge to cope through spending. A Harris Poll survey from 2025 found that 62% of Gen Z respondents expecting a tax refund planned to “doom spend” most of it.^⁷

How to break the cycle (without ignoring reality)

The goal here isn’t to bury your head in the sand. Climate change is real and it’s worth caring about. The goal is to take that anxiety and turn it into something that helps both the planet and your bank account.

Here are a few places to start:

Name it. Recognizing that your spending might be driven by anxiety is the first step. Next time you’re about to make an impulse purchase, pause and ask: “Is this a want, or am I trying to feel better about something bigger?”

Take one meaningful climate action. Research shows that taking concrete action on climate actually reduces climate anxiety.^³ It doesn’t have to be dramatic. Even small changes, like switching to a bank that doesn’t finance fossil fuels, can shift you from feeling powerless to feeling like part of the solution.

Automate the good stuff. Set up automatic savings. Round up your purchases to fund tree restoration. Earn cash back when you shop with climate-friendly brands. When your money is working for your values on autopilot, every purchase feels a little less like a guilty indulgence and a little more like progress.

Reframe saving as hope. Doom spending is rooted in the belief that the future isn’t worth planning for. Every dollar you save is a small bet that it is. Building a savings habit, even a tiny one, is an act of optimism.

Your money can be part of the answer

Here’s the thing that gets lost in the doom spending conversation: money isn’t just a source of stress. It can be a tool for the change you want to see. When you move your deposits to a fossil-fuel-free bank, you’re pulling real money away from the companies driving the climate crisis. When you round up your change to fund tree restoration, you’re making a tangible difference with every swipe. When you shop at climate-friendly brands and earn cash back for doing it, you’re rewarding the right behavior, including your own.

You don’t need to overhaul your life. You just need to point your money in a better direction.

The bottom line

Climate anxiety is real, and it’s affecting how millions of people spend and save. Doom spending might feel like relief in the moment, but it makes things worse in the long run. The antidote isn’t to stop caring about the planet. It’s to channel that care into financial choices that do something about it.

Take the first step. Open a GreenFi account and make your everyday money work for the planet, automatically.†

Frequently Asked Questions

What is doom spending?

Doom spending is the habit of making impulsive purchases to cope with feelings of anxiety and hopelessness about the future, including anxiety about the economy and climate change.^¹

Why is doom spending so common among Gen Z?

Gen Z reports some of the highest levels of climate anxiety and economic uncertainty. About 41% of Gen Z adults admit to doom spending, according to Intuit Credit Karma research. Growing up with constant exposure to crisis-level news and social media amplifies these feelings.^²,³

Can taking climate action actually reduce climate anxiety?

Yes. Research from Deloitte found that people who take environmental actions at work or in their personal lives report feeling less anxious about climate change. Taking concrete steps helps restore a sense of control and agency.^³

How can I align my money with my climate values?

Start by switching to a bank that doesn’t lend your deposits to fossil fuel companies. From there, look for features like round-up programs that fund tree restoration, cash back at climate-friendly brands, and savings accounts that earn competitive interest without financing dirty energy.†

Is it possible to save money and fight climate change at the same time?

Absolutely. A fossil-fuel-free bank account can offer competitive interest rates, no mandatory fees, and cash back rewards, all while keeping your money out of the fossil fuel industry.†

Sources

¹ Intuit Credit Karma. Consumer Spending and Economic Anxiety Survey (2024–2025). creditkarma.com.

² Entrepreneur. What Is Doom Spending? The Trend Takes a Toll on Personal Finances. (Jan 2026).

³ Deloitte. 2024 Gen Z and Millennial Survey. deloitte.com.

⁴ CNN Business. Americans Are Feeling Anxious — So They’re ‘Doom Spending.’ (Nov 2024).

⁵ International Journal of Economics, Business and Management Research. Doom Spending and Financial Health Among Millennials and Gen Z. Vol. 10, No. 01 (2026).

⁶ Wells Fargo. 2025 Money Study. wellsfargo.com.

⁷ Origin Financial. Majority of Gen Z Plan to Doom Spend Tax Refund as Recession Fears Rise. Harris Poll Survey (2025).

Disclosures

† GreenFi is a financial technology company, not an FDIC-insured bank. Banking Services provided by Coastal Community Bank, Member FDIC. The GreenFi Debit Mastercard® is issued by Coastal Community Bank, Member FDIC, pursuant to a license by Mastercard International Incorporated.