Connect with us

Personal Finance

Presidential election prompts some Americans to ‘doom spend,’ report finds

Published

2 years ago

on

Mario Tama | Getty Images News | Getty Images

Retail therapy is thinly coating voters’ anxieties from the presidential election — and their wallets know it.

About 27% of polled shoppers say they are “doom spending” — that is, spending cash despite concerns about the economy and foreign affairs — according to a new report by Intuit Credit Karma. The habit is more prevalent among younger generations, with 37% of Gen Zers and 39% of millennials saying they do it.

Follow: Election 2024 live updates: Trump and Harris await Presidential election results

More than half, or 60%, of Americans surveyed are concerned with the state of the world and economy, more than they were a year ago. The site polled 1,001 U.S. adults in late October.

Top worries among doom spenders include the cost of living (55%), inflation (43%), and the presidential election (28%), the report found.

More than a third, 36%, of respondents say they can’t rationalize saving money due to feelings of uncertainty about the world and economy, per Intuit Credit Karma. That jumps to 47% of Gen Z and 43% of millennials.

Shoppers want a ‘sense of control’

Shoppers might be looking for “a sense of control, especially in a time period where it feels like so much is out of your control,” said Courtney Alev, consumer financial advocate at Credit Karma. 

“Doom spending” affects young people the most as they happen to be “chronically online,” or spend a large amount of time on the internet and social media, Alev said.

To that point, 70% of Gen Zers and 52% of millennials consider themselves to be “chronically online,” Credit Karma found.

“If you’re already online reading all about the things happening in the world, it’s more likely that you’re going to really stress out and then look for those coping mechanisms,” Alev said.

More from Personal Finance:
How the ‘vibecession’ is influencing investors this election year
Presidential election offers opportunities and risks — for ETF investors
What top advisors tell investors about the markets during elections

Shoppers who report making impulse purchases based on social media spent an average $754 over the course of a year, according to a 2023 Bankrate.com survey. 

In some ways, the urge was “born out of the pandemic,” said Ted Rossman, a senior industry analyst at Bankrate.

The trend is especially common among younger shoppers who may feel like “the deck is stacked against them,” he said. 

Young adults‘ finances may be dragged down by student loan balances, and they are finding it to be increasingly unaffordable to buy a home, let alone rent their own place, Rossman said.

‘It’s a tough cycle to break’

Doom spending can lead to bigger financial woes. Credit card balances reached $1.14 trillion in the second quarter of 2024, according to the Federal Reserve Bank of New York. 

As of June, 50% of cardholders carry a balance every month on their credit cards, a recent Bankrate survey found. 

“The share who pay in full now is actually the lowest in four years,” Rossman said.

Cardholders are also carrying the debt for longer. About six out of every 10 people who have credit card debt have had it for at least a year, Bankrate found.

'Phantom debt' is flying under the radar — and it could be a problem for the U.S. economy

“It’s a tough cycle to break,” Rossman said, especially as interest rates remain fairly high for everyday cards.

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

Election-related doom spending also comes just ahead of the busy holiday shopping season. About 20% of Americans plan to go into credit card debt this holiday season to pay for celebrations and obligations, according to Morning Consult.

Credit card balances can be very sticky. About 28% of 2023 holiday shoppers are still paying off debt they took on last year, NerdWallet found after polling 2,079 adults in September.

“Credit card debt is growing at the fastest rate among Gen Z and millennials,” Alev said. 

Credit card balances are up by 66% for Gen Zers and 52% for millennials since March 2022 when the Fed started to hike interest rates, Alev said, citing Credit Karma member data.

The more debt you put on, the harder it will be to save money, she said. 

“We are seeing these two things come together to really negatively affect the lives of many younger consumers,” Alev said.

‘Take the control back’

“Sometimes when people feel the most anxious is when they just don’t have any control,” said Rossman. “You can take the control back by putting a plan together.” 

If you know there’s going to be a temptation to spend money, make space in your budget to such purchases, Rossman said. 

“Set the money aside ahead of time,” he said, “Just take the impulse out of it.” 

Ideally set the money in a separate high yield savings account so you’re getting a better return, said Rossman.

Related Topics:
Continue Reading

Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

Published

7 days ago

on

August 8, 2026

By

The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

Continue Reading

Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

Published

1 week ago

on

August 7, 2026

By

Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

Continue Reading

Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

Published

2 weeks ago

on

August 1, 2026

By

As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

Continue Reading

Trending