Why Young Canadians Are ‘Doom Spending’

Young Canadians are taking on record levels of debt—and not because they’re chasing luxury lifestyles. According to Maclean’s, a growing wave of “doom spending” is sweeping through the country’s Gen Z population, fueled by economic uncertainty, stagnant wages, and a craving for small comforts amid financial instability.

The trend reflects a kind of generational coping mechanism: when the future feels bleak, short-term happiness wins out.

The Maclean’s report opens with Hilary, a 28-year-old policy worker in Toronto whose paycheck barely covers rent. Everything else—groceries, gas, and even the occasional manicure—goes on her credit card. She’s far from alone. Gen Z’s consumer debt in Canada surged by 30% last year, the largest jump of any age group.

Years of pandemic disruptions, skyrocketing housing costs, and stagnant wages have left many young Canadians feeling locked out of traditional milestones like homeownership and savings. Canada’s household debt-to-income ratio now sits around 175%, meaning Canadians owe nearly two dollars for every dollar they earn.

Economists warn this behavior reflects what some call a “YOLO economy,” where young adults prioritize fleeting joy over long-term financial planning. Experts told Maclean’s that this pattern is part trauma response, part rejection of a system that feels stacked against them. Debt no longer carries the stigma it once did—especially as social media trends and fintech tools reframe spending as a form of self-care.

Buy-now-pay-later apps are booming, too, with Gen Z and millennials making up about 80% of users in Canada. Supporters say these tools offer flexibility in a cashless economy, but critics argue they mask the real cost of borrowing and encourage overspending.

Still, a quiet pushback is forming. Online “de-influencer” movements are urging smarter, more transparent spending habits, while some young Canadians are taking on side jobs or scaling back to regain control of their finances.

The phenomenon isn’t limited to Canada. Entrepreneur recently reported that nearly 60% of Gen Z Americans admit to “doom spending” even while knowing it hurts their financial future. But Maclean’s warns Canada’s situation is especially dire: the country now has the highest household debt in the G7—turning what might seem like a generational trend into a serious national warning sign.

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