Majority of Gen Z Plan to “Doom Spend” Tax Refund as Recession Fears Rise

With Tax Day quickly approaching, many Americans have yet to file their taxes. This year, however, tax season is about more than procrastination. Amid growing concerns over a potential recession, rising tariffs, and persistent inflation, many Americans who expect a tax refund this year (41%)—particularly Gen Z (62% ages 18-28)—are planning to doom spend their tax refunds. That is, using most or all of that money for retail therapy as a way to alleviate the stress of economic instability.

A new study conducted by The Harris Poll on behalf of Origin, an all-in-one financial management platform, found that 41% of Americans have delayed filing their taxes this year. One of the top reasons? Stress. Some say they have put off or avoiding filing taxes because they are burned out from financial stress (9%), with younger generations – particularly Gen Z and millennials (ages 29-44) – most likely to cite this reason (15% of Gen Z and 13% of millennials vs. 8% of Gen X ages 45-60 and 2% of Baby Boomers ages 61-79).

The Stress Behind the Spend

For Gen Z and millennials, the economic climate has likely been a major source of stress. Nearly two-thirds of Gen Z expecting a tax refund (62%) say they plan to spend all or most of it to cope with economic uncertainty. Millennials expecting a tax refund are similarly affected, with 52% planning to doom spend their refund. This is concerning when you consider the average U.S. tax refund is $3,271 this year.

This trend correlates with increasing concerns about a looming recession. According to the study, 69% of millennials and 58% of Gen Z are fearful of an upcoming recession. While doom spending isn’t new, many tax filers now plan to use their refunds – often the biggest windfall of the year for Americans – to indulge in impulsive purchases or retail therapy as a temporary escape.

What’s Behind the Doom Spending Trend?

For some younger Americans, the decision to doom spend extends beyond the tax refund. Fears of a recession, rising living costs, and potential tariff increases have created an atmosphere of uncertainty, leading people to make financial decisions that may not be in their long-term best interest. Millennials and Gen Z are particularly vulnerable, with many already burdened with student loan debt, rising housing costs, and job market instability. For them, a tax refund can feel like an escape from mounting financial pressures, even if it means setting themselves up for future financial challenges.

A Growing Fear of Financial Instability

The rising cost of living and global economic uncertainty may leave many Americans, especially younger generations, feeling financially stretched. Despite somewhat precarious financial situations, many are still choosing to spend their refunds impulsively in an attempt to find short-term relief. This behavior suggests that, for many, immediate comfort is being prioritized over long-term financial stability.

“Amid financial uncertainty, it’s important to recognize the potential long-term impact of impulsively spending your tax refund,” said Tyler Horn, head of planning at Origin. “Instead, it’s better to take a proactive approach by creating a financial plan that prioritizes savings, paying down debt, or making purchases that can strengthen your financial stability. For those feeling overwhelmed, consulting a financial advisor or counselor can help navigate these challenges. As Tax Day approaches, it’s worth considering how best to use your tax refund—not just for short-term relief, but as an opportunity to invest in a more secure financial future.”

Methodology 

This survey was conducted online within the United States by The Harris Poll on behalf of Origin from March 27-31, 2025, among 2,082 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact stephanie@goodpr.co.