Even while carrying\u00a0$1.13 trillion\u00a0in credit card debt, many Americans are still willing to splurge on travel and\u00a0entertainment.<\/p>\n
But this summer it will cost even more thanks to \u201cfunflation,\u201d a term economists use to explain the increasing price tags of live events as consumers hanker for the experiences they lost during the Covid years.<\/p>\n
\u201cIt\u2019s hard to overstate the impact of the pandemic. It changed the way so many people view their spending, and the result is that people are more focused on the \u2018right now\u2019 than thinking about 40 years from now,\u2033\u00a0<\/strong>said Matt Schulz, chief credit analyst at LendingTree and author of \u201cAsk Questions, Save Money, Make More.\u201d<\/p>\n Some ticket prices have surged in recent months, according to federal data.<\/p>\n Admission prices for sporting events jumped 21.7% in May 2024 from a year earlier, according to the Bureau of Labor Statistics\u2019 consumer price index data. The category saw the\u00a0highest annualized inflation rate\u00a0out of the few hundred that make up the inflation gauge. Admission to movies, theaters, and concerts rose a relatively modest 3%\u00a0on an annualized basis.<\/p>\n The CPI\u00a0as a whole was up\u00a03.3% in May from a year ago. The index gauges how fast prices are changing across the U.S. economy. It measures everything from haircuts to household appliances.<\/p>\n Despite rising costs, 38% of adults said they plan to\u00a0take on more debt\u00a0to travel, dine out and see live entertainment in the months ahead, according to a\u00a0report by Bankrate.<\/p>\n Meanwhile, 27% of those surveyed said they would go into debt to travel this year, while 14% would dip into the red to dine out and another 13% would lean on credit to go to the theater, see a live sporting event or attend a concert \u2014 including the European leg of\u00a0Taylor Swift\u2019s Eras Tour, Bankrate found.<\/p>\n \u201cThere\u2019s still a lot of demand for out-of-home entertainment,\u201d Ted Rossman, senior industry analyst at Bankrate, recently\u00a0told CNBC.<\/p>\n \u201cSome of that reflects a \u2018you only live once\u2019 mentality that intensified during the pandemic, and some of that is because many economic indicators \u2014 including GDP growth and the unemployment rate \u2014 are in favorable shape,\u201d Rossman said.<\/p>\n Younger adults, particularly Generation Z and\u00a0millennials, were more likely to splurge on those discretionary purchases, Bankrate found.<\/p>\n Although an increased cost of living has made it particularly hard for those just starting out, young adults are taking a more relaxed approach to their long-term financial security, other research shows.<\/p>\n Nearly two out of five Gen Z and millennial travelers have spent up to\u00a0$5,000 on tickets alone for destination live events, a recent\u00a0study from Bread Financial\u00a0found.<\/p>\n And many say it\u2019s well worth it. Rather than cut expenses to boost savings, 73% of Gen Zers between the ages of 18 and 25 said they would ultimately rather have a better quality of life than extra money in the bank, according to another Prosperity Index report by\u00a0Intuit.\u00a0<\/p>\n<\/p>\n Even while carrying\u00a0$1.13 trillion\u00a0in credit card debt, many Americans are still willing to splurge on travel and\u00a0entertainment. But this summer it will cost even more thanks to \u201cfunflation,\u201d a term economists use to explain the increasing price tags of live events as consumers hanker for the experiences they lost during the Covid years. \u201cIt\u2019s hard […]<\/p>\n","protected":false},"author":0,"featured_media":5594,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5593"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5594"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}