Chrometophobia: What It Is and How It Affects the Brazilian Economy?

Crometophobia is a syndrome that occurs in people who are afraid to spend money. It became increasingly prevalent during the Covid-19 pandemic, which has already left more than 600,000 dead and over 21 million recorded cases in just over a year. Often, it is not necessarily caused by a lack of money: individuals suffering from this syndrome feel guilty for spending on basic items.

In some cases, these are individuals who have lived in poverty for a long time and fear returning to a state of lack, which is why they feel a constant need to always create an emergency fund for when the “worst happens.”

It is worth noting that the concept is quite new. Therefore, it is not yet classified within the categories imposed by the World Health Organization (WHO) in its International Classification of Diseases (ICD).

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According to an interview conducted by the ICD published by the BBC, the symptoms vary widely and may differ based on an individual’s upbringing and culture. However, there are some general aspects that can determine the origin of Crometophobia, such as guilt after spending on leisure activities or even basic areas like food or clothing.

Some psychiatrists and therapists argue that some individuals may feel apprehensive about spending due to poor management of their finances, while others are compulsive about their bank statements. The reasons, therefore, are quite varied. According to Crosswhite, this fear can lead to a series of negative feelings in the individual, including generalized anxiety crises or post-purchase depression with thoughts that the investment was not worth it.

Crometophobia and The Economy

Although it is a rare syndrome and not present in a high number of Brazilians, on a large scale Crometophobia could cause a series of impacts on GDP, Gross Domestic Product, leading it to become stagnant.

Symptoms similar to the syndrome began to emerge during the Covid-19 pandemic, and due to this halt in spending caused by the fear of unemployment affecting 14% of the population, the economy faced a setback of 4.1% in 2020. In 2022, the outlook still suggests insecurity with growth below 2%. The fear of spending money during a crisis causes the economy to stagnate, and distrust regarding banks and financial institutions begins to rise, especially with the possibility of losing what may have been invested. 

In her blog discussing entrepreneurship and personal investments, Kelly Reeves addresses the fear of using one’s money even for the most basic items. According to Kelly, this possibility is linked to the fear of lacking an emergency fund, rather than a fear of not being able to manage finances. 

 Elizabeth Sterbenz, a financial therapist from Los Angeles, California, states that the situation is very rare and that there is still no concrete evidence associated with it based on data.