The recent tumultuous economy has led to an array of spending behaviors among Americans — from buying in bulk before prices skyrocket to stricter budgeting in case of a recession. And it might be affecting their fun budgets. Bankrate’s new 2025 Discretionary Spending Survey shows that 54 percent of U.S. adults say they expect to spend less on travel, dining out or entertainment in 2025 than they did in 2024.
Notably, that number is higher than the 49 percent in last year’s survey who expected to spend less in 2024 than they did in 2023.
The cumulative effects of inflation and high interest rates have been straining households, contributing to record levels of credit card debt and causing consumer sentiment to plummet.
— Ted Rossman, Bankrate Senior Industry Analyst
With reignited recession worries and high credit card debt, it makes sense to want extra wiggle room in your budget. But it’s also possible that Americans expect to spend less due to a drop in travel fares, an end to their favorite artist’s concert tour or other non-economic factors.
Learn more about how Americans are paying — or not — to get out of the house this year.
Bankrate’s key insights on discretionary spending in 2025
- Key Insights* More than half of U.S. adults expect to spend less on travel, dining out or entertainment this year. That’s 54 percent, which is more than the 49 percent who expected to spend less last year. * One in three expect to spend more on discretionary purchases this year. That includes 22 percent who expect to spend more on travel, 19 percent on dining out and 15 percent on entertainment. * Around 1 in 3 is willing to take on debt for a discretionary purchase this year. That’s 31 percent, which is less than last year.
People expect to spend less on discretionary expenses this year
For a while, we observed patterns of doom spending among Americans — or overindulging to cope with financial stress. Now, it seems people may be getting serious about their budgets.
More than half of Americans (54 percent) say they expect to spend less on travel, dining out or entertainment this year. That’s 5 percentage points more than last year, when 49 percent expected to spend less in at least one category than they did in the prior year.
“Spending on experiences has boomed ever since the pandemic, but this pent-up demand is waning,” Rossman observes.
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This article originally appeared here and was republished with permission.
