Rising leisure costs known as funflation are reshaping how Americans spend money, pushing consumers toward home-based hobbies and video games as travel expenses soar. Bank of America card data from August 2026 shows hobby spending jumped 7.9% year-on-year, outpacing transaction growth and reflecting a broader shift in consumer behavior driven by higher fuel and airfare prices.
The Economics of Funflation: Why Leisure Costs Are Climbing
Leisure activities across America are facing steep price increases, a phenomenon economists term “funflation.” John Gathergood, an economics professor at the University of Nottingham in the U.K., told CNBC that this trend encompasses everything from gas for weekend cars to the price of ice cream on holiday.
Federal data highlights these pressures. The Bureau of Labor Statistics’ Consumer Price Index showed the recreation index rose 2.7% in the 12 months through August. Meanwhile, sales at sporting goods, hobby, musical instrument, and book stores climbed 10.7% over the same period, according to the U.S. Census Bureau’s Advance Monthly Retail Trade Report. This growth outpaced the 6% increase in total U.S. retail and food-services sales.
Swapping Travel for Home Hobbies
Escalating transportation costs are forcing a major realignment in household budgets. Jet fuel prices jumped 116% from the prior year’s average to reach $194 per barrel for the week ending Sept. 18, according to the International Air Travel Association’s Jet Fuel Price Monitor, a spike fueled by the U.S-Iran war. Consequently, U.S. airfare prices surged 26.5% year-on-year in August.
Rather than abandoning leisure entirely, consumers are redirecting funds. “By foregoing travel abroad, consumers can free up substantial amounts of cash to spend on hobbies at home,” Gathergood told CNBC. He noted that people are substituting expensive trips with home-based hobbies, buying arts, crafts, and camping or hiking gear instead.
Demographics of Fun: Gen Z vs. Millennials
Spending habits vary significantly across generations. Bank of America analysts found that older millennials spent the most on hobbies in the three months leading to August, spending more than double per consumer compared to Gen Z, who spent the least.
Analysts suggest younger cohorts gravitate toward less expensive pastimes like board games, arts and crafts, or “granny core” activities such as knitting, sewing, and baking. At the same time, video game spending saw broad per-person growth across all age groups over the 12 months to August, with Gen Z increasing their gaming expenditures by 20%.
Did you know? Despite rising costs and tightening savings, a PWC survey of over 2,000 adults in April revealed that Americans planned to spend an average of nearly $2,900 on summer travel, with 71% expecting to spend the same or more than the previous summer.
Frequently Asked Questions
What is funflation?
Funflation is the escalating cost of leisure activities, ranging from gas and holiday treats to travel and recreational equipment.
Why are travel costs so high?
U.S. airfares rose 26.5% year-on-year due to soaring jet fuel prices, which hit $194 per barrel following geopolitical tensions involving the U.S. and Iran.
How are consumers responding to higher leisure prices?
Consumers are cutting back on expensive travel and reallocating funds toward home-based hobbies, arts and crafts, sporting goods, and video games.
Are you adjusting your travel plans this year in favor of home hobbies? Share your thoughts in the comments below, and subscribe to our newsletter for more economic updates.
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