“Funflation” in hobbies hasn’t stopped purchases yet

Summary

• Spending growth for hobbies outpaced transaction growth in August 2026, reversing the trend observed from mid-2022 through the end of 2024.
• Spending at arts and crafts stores, hobby shops, and outdoor recreation retailers rose 7.9% year-over-year in August.
• The pace of spending growth was more than twice the pace of transaction growth during the same period.
• Rising travel costs may be contributing to a consumer pivot back toward hobbies.
• Bank of America Institute data aggregates transactions from US Retail, Preferred, Small Business, and Wealth Management clients using various payment vehicles including credit cards, debit cards, ACH, wires, bill pay, cash, and checks.
• Per household spending analysis includes only households completing at least five transactions per month with Bank of America cards.
• Hobby spending data covers arts and crafts stores, hobby shops, ski resorts, scuba retailers, adventure activities, educational toys, outdoor retailers, and some toy stores.
• The analysis excludes golf, travel, and digital entertainment like video games.
• A Bank of America Navigator Survey conducted between January 16 and 22, 2026, included 2,041 participants regarding community and belonging.
• Household income categories are based on quantitative estimates bucketed into terciles that are periodically re-assessed.
• Generational definitions include Gen Z (born after 1995), Younger Millennials (1989-1995), Older Millennials (1978-1988), Gen Xers (1965-1977), Baby Boomers (1946-1964), and Traditionalists (pre-1946).
• Liz Everett Krisberg serves as Head of Bank of America Institute, and David Michael Tinsley is a Senior Economist at the institute.