Americans may be feeling the financial squeeze as inflation and tariff policies escalate various household costs, but many remain committed to opening their wallets for recreation.
According to June 2025 survey data from the analytics consulting firm Integrated Insight, 58.9% of the respondents said they don’t plan to change their out-of-home entertainment costs, and 19.6% said they would increase their leisure spending. From taking vacations to enjoying local attractions, consumers are ready and willing to have fun over the next year.
Although it may seem counterintuitive to splurge on unnecessary expenses when times are tough, there are good reasons to consider fun an essential line item.
Why Pleasure Takes Precedence;
Everyone’s version of valuable extracurriculars is different. It may include concerts, festivals, trivia nights, personal travel, amusement parks, movies, video games, comedy shows, theater, ballet or sporting events.
“Entertainment means different things to different people,” says Joe Camberato, CEO of the fintech lending platform National Business Capital.
“It could be that moment when you finally get to unwind after a grueling work week. For some, it’s a chance to reconnect with family, friends and their own culture. And it can be a temporary escape from a less-than-ideal situation that keeps someone moving forward,” he says.
Planning for the future by saving as much as possible may be financially prudent, but enjoying life as it happens has become essential to many.
“It’s a way to savor the rewards of that hard-earned paycheck,” Camberato says.
“Those spare moments on the weekend? They become an opportunity to dive into something fun you’ve been daydreaming about. Even in a world with rising prices and inflation, those dreams stay pretty consistent,” he adds.
Adjusting Budgets for Pleasure With Less Available Cash
A McKinsey survey conducted in May 2025 found that 43% of U.S. consumers cite rising prices as their top concern, followed by tariff policies (29%) and making ends meet (22%). Yet, prioritizing pleasure continues.
For example, Business Research Company projects the global music festival market to grow from $2.57 billion in 2024 to $3.04 billion in 2025. And though music festival goers can take measures to keep costs down, many are still prepared to pay the sky-high ticket prices.
[Related:11 Ways to Save Money at a Music Festival]
Adam Jaffe is the director of Houlihan Lokey’s Consumer Group and co-heads the bank’s practice for out-of-home entertainment. He says the trend of making room for outside fun began after the COVID pandemic ended.
“Initially, everyone was calling it the ‘COVID bump,'” Jaffe says, “People hadn’t spent money in a year. They had all their student loan payments made. They had payments from the government. So they were spending, spending, spending.”
While student loan payments resumed in 2023 (and the Trump administration began taking action on defaulted loans in May 2025), and the government checks have ceased, U.S. consumers have remained committed to spending on leisurely pursuits.
Social media is also fueling the drive to be out in the world, taking part in large and small events, says Brett Goldberg, co-CEO and co-founder of TickPick, a live-events ticketing platform.
“Entertainment is something the consumer is making a priority,” Goldberg says. “Live entertainment, getting together in groups, people post about going. It’s social currency.”
New Law Helps Consumers With Events and Travel
Despite people’s willingness to spend on entertainment and vacations, they’ve balked at extra charges and vague pricing. U.S. consumers had become so irritated by the practice that the White House, then under the Biden administration, got involved in August 2023, signaling an eventual end to the junk fees.
According to Goldberg, consumers were frustrated with the purchasing process because they had to enter their credit card numbers first to determine the total cost. Understanding the actual cost of a basketball game or hotel room is essential for planning.
The Federal Trade Commission’s Rule on Unfair or Deceptive Fees went into effect on May 12. This law prohibits live event ticket sellers and short-term lodging companies (such as hotels, motels and vacation rentals) from using tactics that obscure or misrepresent total prices.
When people know the actual cost of a ticket or vacation, they can take steps to save the right amount and make purchases without unnecessary surprises.
[READ: Is It Cheaper to Drive or Fly This Summer?]
How to Incorporate Entertainment Into Your Budget
Amy Colton, wealth advisor and president of the divorce resource Divorce Made Simple, encourages building entertainment into a spending plan, whether you budget alone or with a partner.
“It offers a much-needed break from daily routines, reducing stress and improving mental health,” Colton says, who has found that it also fosters connections with others and nurtures social ties. A memorable concert or trip can provide lifelong memories.
“Choose what truly matters to you,” Colton says.
“If music is your passion, allocate more toward concerts and perhaps cut back on dining out. After that, start dedicating funds to your fun. Create a separate ‘entertainment’ savings account and make regular deposits. Even a small monthly amount can accumulate over time, ensuring you can enjoy it without financial stress,” she adds.
That’s exactly what Gabrielle Gambrell, founder of the New York City marketing and communications company Gift of Gab, does.
She takes fun seriously, setting cash aside for activities like quarterly trips to Disneyland. Gambrell set up direct deposit with her bank and deposits $1,000 a month into a designated “play” account. “I often forget about it, but when something comes up, like Usher in concert, I have the money ready to go,” she says.
“We have two children, so it’s really expensive,” Gambrell says. “I am the budgeting queen so that we can have the luxuries. It’s really important to enjoy life. I work really hard and my husband does too. Enjoying the fruits of our labor is very important to me. We’re here for a limited time. Make the most of it.”
When entertainment costs are particularly expensive, Gambrell makes sacrifices to afford them. Gone are the bimonthly salon sessions, and she cuts back on extraneous grocery store purchases.
“Budgeting is the name of the game,” Camberato says. “Try to score some extra perks from your spending, like cash back or rewards from a credit card.”
But be realistic, too.
“You know yourself and your limits, so tweak your budget where you can realistically make it work,” Camberato says.
“If your budget gets even tighter, it might mean temporarily putting entertainment on hold. Don’t sweat it, though. With some savvy financial planning, this phase won’t last forever, and you’ll be back at your favorite movie theater or concert venue before you know it,” he adds.
Memorable Activities Can Be Cheap or Even Free
Don’t assume that ticket prices to everything from concerts to games will set you back ridiculous sums, Goldberg says. “Baseball games can be as little as $10,” he says.
All kinds of top talent and classic performers are touring, and tickets can be surprisingly affordable.
With Live Nation’s $30 Ticket to Summer promotion, for example, you can see everyone from Ja Rule to Judas Priest for less than an average meal out. Daily deal sites like Groupon offer deep discounts on a span of entertainment activities, too.
When money is tight, think outside the box for ideas, urges Nina Meehan, a creativity consultant. There are ways around high costs. “If you can’t afford Cirque Du Soleil, which many of us cannot, try finding a local traveling circus,” she says. “The price point will be much lower but the acts can be just as fun and daring.”
And then there are fun but memorable activities that cost nothing.
“Many communities sponsor free outdoor music events,” Meehan says. “Figure out which museums do free evenings, often it’s once per month. Create your own entertainment by inviting a friend who plays the guitar, finding a nice outdoor spot at a park or a beach and invite friends to come for a sing-along of a bunch of songs that everyone knows,” she adds.
Whatever your financial parameters, Jaffe says you can often get the most out of an event if it’s unique rather than routine.
“I can always go out to meet friends for a meal again another time,” he says. “You can’t put off experiences that won’t come around again.”
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This Is the One Thing Americans Refuse to Stop Spending On originally appeared on usnews.com
Update 06/30/25: This story was published at an earlier date and has been updated with new information.
