• 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
  • Hyundai, Kia recall 91,000 US vehicles over fire risks, owners urged to park outside
  • American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory
  • Digital health companies got pummeled by Wall Street in 2024 as industry adapts to post-Covid slowdown
  • Biden to launch task force to crack down on ‘unfair and illegal pricing’ amid rising inflation
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

Shoppers are flocking to Temu for cheap deals — but...

June 12, 2023

Reddit co-founder Alexis Ohanian takes minority stake in Chelsea FC...

May 16, 2025

Thousands of SVB staffers to receive $25 million in payroll...

April 26, 2023

Amazon to invest another $4 billion in Anthropic, OpenAI’s biggest...

November 23, 2024

McDonald’s plans to eliminate self-service soda stations at all its...

September 13, 2023

Target says its holiday sales were better than expected —...

January 16, 2025

TD Bank pleads guilty in money laundering case, will pay...

October 10, 2024

Fatburger parent company, chairman charged in alleged fraud scheme

May 13, 2024

United Airlines CEO responds to string of safety incidents that...

March 20, 2024

U.S. passport processing times return to pre-pandemic levels

December 20, 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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

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

      June 27, 2024 2,765 views
    • 2

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

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

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

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

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

      June 27, 2024
    • 2

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

      August 9, 2024
    • 3

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

      June 25, 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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    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

    Chocolate expected to get more expensive...

    June 14, 2023

    Social Security Administration to remove food...

    March 29, 2024

    U.S. Steel CEO appeals to Trump...

    January 8, 2025
    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