Increased Spending on Hobbies Despite Financial Strain

Americans are currently spending more on hobbies and recreational pursuits, even though the rising cost of living is making leisure activities tougher to manage financially.

According to a report from the Bank of America Institute in September, consumer expenditure on hobbies rose by 7.9% from the previous year in August, while the number of transactions only grew by 3.4%. This widening gap points to a trend termed “funflation,” which refers to the escalating costs associated with leisure activities and is adding further financial stress for Americans who are already facing daily expenses.

The disparity between spending growth and transaction count implies that the amount spent per purchase has increased by about 4.4% over the year; however, this doesn’t automatically mean the prices of hobbies themselves have risen by that same amount.

The analysis conducted by Bank of America focused on spending habits at various types of businesses, including arts and crafts stores, hobby shops, outdoor recreation outlets, and places that offer activities like skiing, camping, and scuba diving.

This data represents a shift from August 2025, when consumers spent less despite higher transaction rates. In 2023, spending on hobbies fell by nearly 4%, even while transactions had a slight uptick of almost 1%, according to the study.

Interestingly, consumers in the U.S. are still willing to spend despite ongoing affordability issues. Bank of America’s October Consumer Checkpoint indicated a 6.2% rise in credit and debit spending year over year in September, marking the third-highest annual growth rate in four years.

Generational differences are also significant. Older Millennials are spending more on hobbies than any other age group, even though they only have about four hours and 15 minutes of leisure time daily— the least of all the groups examined. Researchers noted this higher expenditure might be due to purchases made for both their children and themselves.

In contrast, Gen Z appears to be cutting back. Their hobby spending growth has nearly stagnated in August compared to an increase of around 16% a year prior.

That being said, younger Americans aren’t completely giving up on leisure activities. Bank of America discovered that Gen Z’s spending on video games surged by about 20% from the previous year in August, with more than a quarter of this demographic still engaging in video or online gaming.