The ‘funflation’ effect: Why Americans are spending on travel and entertainment

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The ‘funflation’ effect: Why Americans are spending on travel and entertainment
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Jessica Dickler is a personal finance writer for CNBC.

Even while carrying $1.13 trillion in credit card debt, many Americans are still willing to splurge on travel and entertainment. But this summer it will cost even more thanks to “funflation,” 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. “It’s hard to overstate the impact of the pandemic.

Why Americans go all out on entertainment Despite rising costs, 38% of adults said they plan to take on more debt to travel, dine out and see live entertainment in the months ahead, according to a report by Bankrate.

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