• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick The ‘funflation’ effect: Why Americans are spending on travel and entertainment
Editor's Pick

The ‘funflation’ effect: Why Americans are spending on travel and entertainment

by June 27, 2024
by June 27, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Even while carrying $1.13 trillion in credit card debt, many Americans are still willing to splurge on travel and entertainment.

But this summer it will cost even more thanks to “funflation,” a term economists use to explain the increasing price tags of live events as consumers hanker for the experiences they lost during the Covid years.

“It’s hard to overstate the impact of the pandemic. It changed the way so many people view their spending, and the result is that people are more focused on the ‘right now’ than thinking about 40 years from now,″ said Matt Schulz, chief credit analyst at LendingTree and author of “Ask Questions, Save Money, Make More.”

Some ticket prices have surged in recent months, according to federal data.

Admission prices for sporting events jumped 21.7% in May 2024 from a year earlier, according to the Bureau of Labor Statistics’ consumer price index data. The category saw the highest annualized inflation rate out of the few hundred that make up the inflation gauge. Admission to movies, theaters, and concerts rose a relatively modest 3% on an annualized basis.

The CPI as a whole was up 3.3% in May from a year ago. The index gauges how fast prices are changing across the U.S. economy. It measures everything from haircuts to household appliances.

Despite rising costs, 38% of adults said they plan to take on more debt to travel, dine out and see live entertainment in the months ahead, according to a report by Bankrate.

Meanwhile, 27% of those surveyed said they would go into debt to travel this year, while 14% would dip into the red to dine out and another 13% would lean on credit to go to the theater, see a live sporting event or attend a concert — including the European leg of Taylor Swift’s Eras Tour, Bankrate found.

“There’s still a lot of demand for out-of-home entertainment,” Ted Rossman, senior industry analyst at Bankrate, recently told CNBC.

“Some of that reflects a ‘you only live once’ mentality that intensified during the pandemic, and some of that is because many economic indicators — including GDP growth and the unemployment rate — are in favorable shape,” Rossman said.

Younger adults, particularly Generation Z and millennials, were more likely to splurge on those discretionary purchases, Bankrate found.

Although an increased cost of living has made it particularly hard for those just starting out, young adults are taking a more relaxed approach to their long-term financial security, other research shows.

Nearly two out of five Gen Z and millennial travelers have spent up to $5,000 on tickets alone for destination live events, a recent study from Bread Financial found.

And many say it’s well worth it. Rather than cut expenses to boost savings, 73% of Gen Zers between the ages of 18 and 25 said they would ultimately rather have a better quality of life than extra money in the bank, according to another Prosperity Index report by Intuit. 

This post appeared first on NBC NEWS
You Might Also Like
  • Ford to spend $3 billion to expand large truck production to a plant previously set for EVs
  • Red Lobster seeks a buyer as it looks to avoid bankruptcy filing
  • FAA increases oversight of Boeing 737 Max 9 jets after Alaska Airlines near-disaster
  • Over 3 million on Social Security may wait more than a year for higher payments
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Amazon reaches $2 trillion market cap for the first time
next post
Rivian secures up to $5 billion from Volkswagen; shares soar 40%

You may also like

Capital One-Discover merger could put a bigger squeeze on credit...

February 21, 2024

Target launches paid membership program as it chases new revenue...

March 7, 2024

Amazon Web Services CEO Adam Selipsky to step down

May 15, 2024

Semtech’s LoRa® Devices Optimize Building Management Systems in U.S.

December 7, 2022

OpenAI releases Sora, its buzzy AI video-generation tool

December 10, 2024

Dave & Buster’s to let players bet against each other...

May 2, 2024

Bitcoin approaches new all-time high after surpassing $65,000

March 5, 2024

Trader Joe’s-branded cashews sold in 16 states recalled over salmonella...

March 19, 2024

Trump Media stock sinks to new post-merger low

August 20, 2024

More than 75,000 workers to strike at hundreds of Kaiser...

October 9, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,450 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    JPMorgan to pay $75 million to...

    September 27, 2023

    Trump Organization sues Capital One bank...

    March 10, 2025

    Bitcoin approaches new all-time high after...

    March 5, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here