Rising hobby costs and “funflation” strain U.S. consumer wallets
Bank of America Institute data shows Americans are spending more on hobbies while prices for leisure activities climb, a trend the institute calls “funflation.”
A new Bank of America Institute report finds that U.S. consumers are allocating more money to hobbies even as the price of leisure goods and services rises, a phenomenon the institute labels “funflation.” Using its credit-card data, the institute recorded a 7.9% year-over-year increase in hobby spending for August, double the pace of transaction growth at 3.4%. This contrasts with August 2025, when transaction counts outstripped spend.
The surge is attributed to a shift away from travel amid higher fuel costs and slower after-tax wage growth. Older Millennials top the spending chart, likely because many have children, while Gen Z shows near-zero transaction growth, driven by a drop in outdoor-recreation purchases. Younger Millennials and Gen Z lean toward cheaper activities like arts, crafts and board games, whereas older cohorts continue to spend on higher-priced pursuits. The report also cites Census Bureau time-use data, noting older Millennials have the least daily leisure time, suggesting their spending supports both personal and family hobbies.
Why it matters
Higher hobby costs affect household budgets and signal broader inflation pressures in discretionary spending.
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