'Funflation': People are spending on hobbies, leisure even as prices rise

Funflation is real, but it’s not stopping Americans from shelling out money for a good time.

With consumer prices rising across the board, how do you balance smarter spending and still avoid FOMO?

Bank of America says spending on hobbies jumped nearly 8% in August from a year earlier, more than double the pace of overall transaction growth, according to BOA’s card data.

Who’s spending the most?

Older Millennials lead the pack, followed by Baby Boomers, and Gen X.

For younger Gen Z consumers, traditional hobby spending has slowed, but spending on video games jumped about 20% year-over-year in August.

So, how do you manage funflation and still maintain some balance?

Fidelity recommends the 60-30-10 guideline for monthly budgeting.

Put 60% of your take-home pay toward essentials like housing, food, and bills.

Take 30% for fun, like hobbies, dinners, and movies and save 10% for near-term goals and emergencies.

That 30% earmarked for fun can stretch even further with a little creative thinking.

Many attractions like zoos, museums, and state parks have free admission days, so check their calendars online.

Libraries have more than books. You can borrow movies and board games, or even get discounts on local events.

Finally, check your credit card rewards. They can add up faster than you realize, and you might have deals waiting.