Key Takeaways
- A Bank of America Institute study examines hobby spending across generations.
- Older millennials lead in monthly hobby expenditures, possibly covering costs for their children.
- Some individuals transform hobby interests into profitable business ventures.
How much does it cost to have fun? It varies depending on who you ask—and their age.
According to a recent Gallup poll, more Americans today consider their hobbies or recreational activities “extremely” or “very important” than they did two decades ago.
Nevertheless, spending on preferred hobbies differs markedly across generations.
A new analysis from the Bank of America Institute, which reviewed credit‑card data using a three‑month moving average through August 2026, explores how Gen Z, millennials, Gen X, and Baby Boomers engage in the hobby economy.
Hobby Spending Rose 7.9%, Indicating a Rise in “Funflation”
Hobby spending increased 7.9% year‑over‑year in August—more than twice the growth rate of overall transactions—suggesting an uptick in what economists call “funflation.”
The term “funflation,” coined by economists, describes the rising cost of entertainment and experiences that people are willing to pay to compensate for time lost during the pandemic.
On average, Baby Boomers spend more than $200 per person each month on hobbies, the study shows.
Boomers’ hobby outlay is comparable to that of Gen X, but it noticeably exceeds the spending of Gen Z and younger millennials, who typically allocate about $100 and just over $140 per month, respectively.
Older millennials, however, claim the top spot, averaging nearly $220 per person monthly. Researchers attribute this to older millennials often financing hobbies for their children in addition to their own pursuits.
Turning a Hobby into a Business Opportunity
For many, a hobby can evolve from a simple pastime into a lucrative business.
During the pandemic, nearly 60 % of Americans picked up a new pastime, and roughly half of those turned it into a side hustle to generate extra income, according to a LendingTree survey.
Earlier this year, Anna Hudick shared with Entrepreneur how she transformed a jewelry‑making hobby into a business at age 58 after retiring from an engineering career.
Today, Hudick sells her jewelry designs and leads craft classes priced between $65 and $75 per participant, aiming to introduce the craft to a broader audience.
“They come in after work, stressed, and enjoy two hours away from their phones and emails,” Hudick said. “They relax, and by the time they finish, they’re delighted with what they’ve created. It’s truly fulfilling.”
