Your wallet has probably noticed the cost of entertainment going up … and up … and up. Tickets to movies, theaters and concerts have increased 20% since 2021, and with epic tours like Cowboy Carter sweeping the world’s stages, this concert season isn’t costing any less.
“Funflation” is the term given to the economic phenomenon when consumers are willing to pay these higher prices, highlighting a shift in values despite a tight economy. But just because events and experiences are more expensive, doesn’t mean they have to be budget busters. By prioritizing your spending and savings goals, you can enjoy what matters most to you while still planning for future expenses.
Read more: How an Ally Bank Spending Account can make managing your money easier
The rise of funflation
The COVID-19 pandemic caused a major shift in consumer attitudes toward spending, with many reporting a desire to splurge following extended periods of time with stay-at-home and social distancing measures. Since then, traveling and attending events like concerts, theater and spectator sports have become a priority for those who feel they lost time for those in-person moments. This especially applies to younger generations, who may feel they missed out on certain formative and traditionally in-person experiences, such as graduating — and they’re making up for it now.
Whatever the motive, a renewed passion for live experiences has driven demand and a resulting uptick in ticket prices. (Other costs, such as travel, accommodations and dining, have also risen.) Funflation is the result of fans and travelers investing in experiences despite the high costs.
Read more: Use our calculator to see how long it will take to save toward your next big event
While prices have gone up, consumers are still willing to pay. Bankrate found that one in three Americans would be willing to go into debt for travel, dining out or live entertainment. Younger generations, in particular, are prioritizing travel and experiences, as the post-pandemic “catch-up” period has escalated into this full-fledged era of prioritizing fun.
Families and older generations aren’t missing out either. Ocean cruises are up 4.5% year over year, with 19.5 million Americans planning cruise vacations in 2025. And while Disney World hasn’t quite reached its pre-pandemic attendance levels of 58 million annual visitors, nearly 50 million attended the park in 2024. Among retirees, “travel” is the third most popular retirement activity behind spending more time with family and friends, and pursuing hobbies post-pandemic.
Before you swipe a credit card, consider a little planning ahead by using Ally Bank's automated savings tools to put money aside on a recurring basis to financially prepare for bigger purchases.
The consequences of funflation
Typically, high inflation causes consumers to set stricter budgets and spend less money. But that’s not the case with funflation.
Still, it’s important to consider the possible consequences of overspending during times of inflation, including:
Debt: Overspending can lead to debt, which can incur interest. If you don’t pay loans or credit card balances in full, this could lead to a vicious cycle of struggling to get out of debt.
Lack of savings: In the moment, it can be tempting to go all out on experiences, but doing so can impact your ability to save for future financial goals, like buying a house or retiring. Funflation could be particularly detrimental to older generations who have less time to save for big things like retirement.
Stress: Not preparing for the future could cause you to be anxious or overwhelmed by the state of your finances.
While it can be challenging to say no to opportunities when it seems like everyone else has it all — vacations, cars, clothes and houses — a key skill to achieving a debt-free life is simply learning when to pass.
How to have fun without overspending
It’s human nature to want to have fun. Consider these tips to indulge without going overboard:
Create a “fun” bucket: Use the buckets tool in an Ally Bank Spending Account to set aside funds for particular expenses, such as travel and concerts. This enables you to see and manage exactly how much money you’re putting toward entertainment spending.
Pack light and thrift special outfits: When traveling, consolidate your wardrobe into a few key pieces that can be worn throughout your trip to avoid baggage fees. Find a laundromat at your destination to wash your clothes mid-trip if your vacation is on the longer side. If you’re looking for that perfect concert fit, try secondhand or rental sites as more sustainable and affordable options.
Research restaurants: One of the best aspects of travel is the food, but it doesn’t have to be one of the most expensive parts. Look at menus and prices ahead of time to help you plan your meal costs. Decide on any “splurge meals” ahead of time, so you can include them in your budget.
Find deals and discounts: Use comparison sites and multi-search booking engines to find the best deals. You can also check directly with airlines, hotels and rental car companies for potential discounts.
Use a credit card with perks: Some credit cards offer welcome bonuses or rewards programs like cash back, points or miles, which can be redeemed for various items or services.
Savor over splurge
At the end of the day, remember that it's OK to treat yourself from time to time. But treating yourself shouldn’t jeopardize your financial future. By prioritizing necessary expenses, debt paydown and savings, you can better enjoy your funflation purchases without stress or future debt.
