Photo by Getty Images. Illustrations by bankrate
The recent turbulent economy has led to a series of spending behaviors among Americans. From buying in bulk before prices surges, to more stringent budgeting in the event of a recession. And that may have an impact on their fun budget. According to Bankrate’s new 2025 discretionary spending survey, 54% of US adults expect to spend more on travel, eating out or entertainment in 2025 than 2024.
In particular, the number is higher than last year’s survey, which was expected to spend less than 2024.
With recession concerns and high credit card debt, it makes sense to want extra wiggling room in your budget. However, it is also possible that Americans are hoping to spend less less due to lower travel fares, concert tours for their favorite artists, or the end of other non-economic factors.
Learn more about how Americans are paying this year, or how to get out of the house.
Important bank rate insights regarding discretionary spending in 2025
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I hope this year will be spent on discretionary costs
For a while we observed patterns of fate spending among Americans. Now it seems people are getting serious about their budgets.
Over half (54%) of Americans expect to spend less on travel, meals or entertainment this year. That’s five percentage points more than last year, when 49% expected to spend in at least one category than last year.
“Expenses on experiences have been booming ever since the pandemic, but this uptick demand has declined,” Rothman said.
We want to finally be scattered with the “You are only alive once” restrictions.
– Ted Rothman
Bankrate Senior Industry Analyst
This year’s survey found that 38% expect to see a lower travel spending, while 39% expect to spend less on 2025 meals and live entertainment (including concerts, sporting events and theatre performances).
In contrast, only about one person (33%) in at least one of these categories this year expects about one person (19%) (19%) on travel, and even fewer (15%) on live entertainment.
Money considerations may be the reason people expect to do less, but that may not be the only motivation.
Bankrate’s Summer 2025 Travel Survey shows that 65% of Americans who haven’t traveled this summer say they can’t afford it, while another 23% say they’re not interested. Furthermore, 16% say it’s too troublesome.
Gas, airfares, car rentals and hotel prices have also declined for a year. Some people may expect to spend less on travel, as they do not cost money. However, admission fees for movies, theaters, concerts, sporting events and food away from home have been increasing for a year now, so you can avoid these purchases and expect less money.
About one in three Americans are still willing to spend their debts and pay for fun
About two in five Americans (38%) took on debt in 2024 to pay for travel, dining out and live entertainment. This year it fell to 31%.
Still, 22% are willing to use their debts on travel, paying 11% for travel and 9% for live entertainment.
Keep in mind that while good debt invests in growing assets, bad debts pay for those that quickly lose value. One-time experiences may cost interest fees later in the future.
Three Ways to Get an Affordable Experience in 2025
If costs are the factor that hinders you from this year’s activities, there are options to ensure that the fun doesn’t leave the window completely. Here’s how to find travel, food and entertainment on a budget:
- Travel on a budget. You don’t need to book a $2,000 flight across the sea to make your elite travel experience. Try making swaps like driving, not flying or staying with friends, rather than hotels. It’s useful when you have the flexibility to accommodate your dates and destinations so you don’t go to the Bahamas for Spring Break or Disney World. Credit card travel rewards can also work in your favor, unless you are in debt to earn them. Learn these six tips, travel smartly, and avoid debt.
- Dining on a budget. In general, cooking at home is more affordable than eating, and cooking books and meal kits like Hellofresh and Blue aprons are a fun way to go. However, if you enjoy the evenings from time to time at a restaurant, you can buy discounted gift cards, use credit card rewards via portals such as Chase Dining, or take advantage of many cards, especially dining credits that came from American Express. Check out these best credit cards in the restaurant.
- Find entertainment on your budget. Most cities and towns offer free live music, trivia, art exhibitions, hobby meetups, library measurements for kids, volunteer opportunities, holiday events and more. Check out the local website and influencer’s social media profiles for upcoming events. Or invite your friends to game nights, potlucks, or karaoke. Free fun awaits you – you may just need to be creative.
