Key Takeaways
- A Bank of America Institute study digs into hobby spending across generations.
- Older millennials invest the most in hobbies, potentially covering costs for young children.
- Some people turn their fun hobbies into lucrative business opportunities.
How much does it cost to have fun? That depends on whom you ask — and how old they are.
Nowadays, more Americans than two decades ago rate their hobbies or recreational activities as “extremely” or “very important” to them, per a recent Gallup poll.
But how much people spend on their preferred hobbies varies significantly across generations.
A new analysis from Bank of America Institute, which examined credit card data across a three-month moving average to August 2026, explores how Gen Z, millennial, Gen X and Baby Boomer consumers participate in the hobby economy.
Hobby spending rose 7.9% and suggests a rise in “funflation”
Hobby spending rose 7.9% year over year in August, but at more than double the rate of transaction growth, suggesting an uptick of “funflation” hobbies, according to the report.
“Funflation,” a term coined by economists, refers to the rising price of entertainment and experiences that people are willing to pay to make up for lost time during the pandemic.
On average, Boomers spend more than $200 per person on their hobbies monthly, the study shows.
Boomers’ hobby spending is right in line with that of Gen X, but notably higher than that of Gen Z and younger millennials, who typically spend about $100 and just over $140 on their hobbies each month, respectively.
However, older millennials take the top spot for monthly hobby spending, edging past Gen X and Boomers at nearly $220 per person. Researchers believe this may be because older millennials are most likely to be spending on their kids’ hobbies in addition to their own.
Investing in your hobby could lead to a business opportunity
What’s more, for some people, hobbies evolve from a fun way to pass the time into lucrative business opportunities.
During the pandemic, nearly 60% of Americans picked up a new hobby, and about half of them turned it into a side hustle to bring in extra cash, according to a survey from LendingTree.
Earlier this year, Anna Hudick told Entrepreneur about how she turned a jewelry-making hobby into a business at age 58 after retiring from an engineering career.
Today, Hudick sells her jewelry designs and teaches craft classes, priced between $65 and $75 per person, to introduce the hobby to more people.
“They’re coming in after work, stressed, and they have two hours where they aren’t tied to their phone or email,” Hudick said. “They just relax. Then by the time they’re done, they’re so happy with what they’ve made. It’s really fulfilling.”
Key Takeaways
- A Bank of America Institute study digs into hobby spending across generations.
- Older millennials invest the most in hobbies, potentially covering costs for young children.
- Some people turn their fun hobbies into lucrative business opportunities.
How much does it cost to have fun? That depends on whom you ask — and how old they are.
Nowadays, more Americans than two decades ago rate their hobbies or recreational activities as “extremely” or “very important” to them, per a recent Gallup poll.
But how much people spend on their preferred hobbies varies significantly across generations.