‘Funflation’ Being Buzzkill For Those Looking To Have Good Time

Americans are spending more on hobbies and recreational activities without making nearly as many additional purchases as rising living costs make leisure time harder to afford.

Consumer spending on hobbies climbed 7.9% year over year in August, while transactions increased just 3.4%, according to a September report from the Bank of America Institute. The widening gap suggests a resurgence of “funflation,” or the rising cost of recreational activities, potentially adding another financial burden for Americans already struggling with everyday expenses.

The difference between spending and transaction growth indicates that the average amount spent per purchase increased approximately 4.4% over the year, although the figures do not necessarily mean hobby prices themselves rose by that amount.

Bank of America’s analysis covered spending at arts and crafts stores, hobby shops, outdoor recreation retailers and businesses offering activities such as skiing, camping and scuba diving.

The findings mark a reversal from August 2025, when hobby purchases grew faster than the amount consumers spent. In 2023, hobby spending declined nearly 4% even as transactions increased almost 1%, according to the report.

The spending increases come as American households continue opening their wallets despite persistent affordability concerns. Bank of America’s October Consumer Checkpoint found that household credit and debit card spending increased 6.2% year over year in September, the third-strongest annual growth rate in four years.

However, the bank’s findings also revealed significant differences between generations.

Older Millennials spent more on hobbies than any other generation, despite having approximately four hours and 15 minutes of daily leisure time on average, the least of any age group examined. Researchers suggested their higher spending could reflect purchases for their children as well as themselves.

Meanwhile, Gen Z consumers appeared to be pulling back. Growth in their hobby purchases slowed to nearly zero in August, compared with an increase of approximately 16% a year earlier.