A new report from the Bank of America Institute finds that American consumers are spending more on their hobbies but are facing higher prices for their enjoyment.The report notes that Bank of America card data suggests consumers are facing "funflation" in the prices they pay for their hobbies at arts and crafts stores, hobby shops, outdoor recreation service providers and retailers that specialize in activities including hiking, camping, skiing and scuba diving.Using that definition, card data shows spending on hobbies rose 7.9% year over year in August, which was twice as fast as the 3.4% growth in transactions. That trend is the opposite of what was observed in August 2025, when transactions outpaced spending by nearly a percentage point. Spending growth on hobbies outpaced transactions during the pandemic, per the report."In our view, it's likely that people splurged on hobbies amid social distancing during the pandemic, then gravitated back toward pricier alternatives like travel throughout 2022 and 2023. However, last year there may have been some rotation back to less expensive leisure like hobbies as after-tax wage growth slowed considerably," the Bank of America Institute wrote.BANKS WARN AI SHOPPING AGENTS COULD INCREASE RISK OF SCAMS, FRAUD AND DATA PRIVACY BREACHESBank of America's card data also suggests there's been an acceleration in hobby spending in recent months, which the report said may be occurring as "some consumers balance shift away from travel due to higher prices from rising fuel costs."The report noted a generational divide in spending on hobbies, with older millennials spending the most, followed closely by baby boomers and Gen X. Those cohorts are spending significantly more on hobbies than their Gen Z counterparts, while younger millennials' spending is roughly in the middle of their older and younger peers."Older Millennials also boast the largest share of their population with hobby spending. In our view, it's likely because this group is most likely to have young children. Which may mean older Millennials not only spend on their own hobbies but on their kids' as well," the Bank of America Institute said.AMERICANS SPLURGED SMARTER THIS SUMMER WITH MICRO-VACATIONS AND TRAVEL STACKINGIt noted that data from the Census Bureau's American Time Use Survey suggests that older millennials have the least amount of leisure time per day on average at a little more than four hours per day, which suggests that their hobby spending may be for their kids and themselves."On the other… [TheTopNews] Read More.
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