Photography by Getty Images; Illustration by Bankrate
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.
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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.
We’re finally seeing a limit to the ‘you only live once’ urge to splurge.
— Ted Rossman
Bankrate Senior Industry Analyst
This year’s survey reveals that 38 percent expect a decrease in their travel spending and 39 percent each expect to spend less on dining out and live entertainment (including concerts, sporting events and theater performances) in 2025. Some people expect to spend less in more than one category.
In contrast, only around 1 in 3 (33 percent) expect to spend more this year on at least one of these categories — roughly 1 in 5 each on travel (22 percent) and dining out (19 percent), and even fewer on live entertainment (15 percent).
Money considerations could be a reason people expect to spend less, but it may not be the only motive.
Bankrate’s 2025 Summer Travel Survey shows that, while 65 percent of Americans who are not traveling this summer say they can’t afford it, another 23 percent say they’re just not interested. Further, 16 percent say it’s too much of a hassle.
The prices of gas, airfare, car rentals and hotels are also down from a year ago. Some people might expect to spend less on travel because it costs less to do so. However, the costs of admission to movies, theaters, concerts and sporting events and food away from home are up from a year ago, which may influence people to avoid these purchases and expect to spend less.
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Forty-three percent of boomers (ages 61-79) and 39 percent of Gen Xers (ages 45-60) expect to spend less on travel expenses this year, compared to 36 percent of millennials (ages 29-44) and 29 percent of Gen Zers (ages 18-28).
Roughly the same number of boomers (42 percent) and Gen Xers (43 percent) expect to spend less on dining out, compared to 39 percent of millennials and 31 percent of Gen Zers.
And nearly half of boomers (47 percent) and 2 in 5 Gen Xers (42 percent) expect to spend less on live entertainment, compared to 35 percent of millennials and 27 percent of Gen Zers.
Gen Xers and boomers might wonder what will happen to 401(k)s in a recession and how to still get Social Security benefits. These generations are closer to — or may already be tapping into — their retirement funds, and spending less today to save for tomorrow is a reasonable response.
Or they may simply expect to spend less because they’ve noticed decreases in the costs of their preferred discretionary activities.
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Among households earning under $50,000 per year, 43 percent are expecting to spend less on travel, 44 percent on dining out and 45 percent on live entertainment.
That’s slightly above households earning $50,000 to $79,999 who expect to spend less on travel (39 percent), dining out (40 percent) and live entertainment (41 percent).
And that’s a noticeable difference compared to households earning $80,000 and $99,999 who expect to spend less on travel (34 percent), dining out (38 percent) and live entertainment (34 percent), and households earning $100,000+ who expect to spend less on travel (27 percent), dining out (30 percent) and live entertainment (28 percent).
With it being harder than ever to reach middle class, lower earners might be trimming their discretionary budgets in order to simply meet basic needs. Increasing income, gaining more education, saving money and paying off debt are all ways to improve one’s financial status. But right now, that may feel like swimming upstream.
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More women than men expect to spend less this year overall, but especially when it comes to dining out and entertainment. Similar percentages of women (39 percent) and men (36 percent) expect to spend less on travel in 2025, but women are more likely to expect a decrease when it comes to dining out and live entertainment, both of which 42 percent of women say they expect to spend less in this year. That’s compared to around 1 in 3 men (36 percent) who expect to spend less on dining out and entertainment.
The gender pay gap, which has only shrunk by 10 percentage points in the last two decades, could play a role here, since lower incomes leave less leeway for discretionary spending. Alternatively, women may expect to spend less because they’re less interested in traveling or entertainment options this year or have other priorities for spending their discretionary funds.
Around 1 in 3 Americans are still willing to use debt to pay for fun
About 2 in 5 Americans (38 percent) were willing to take on debt to pay for travel, dining out or live entertainment in 2024. This year, it’s down to 31 percent.
Still, 22 percent are willing to use debt to pay for travel, 11 percent for dining out and 9 percent for live entertainment.
Keep in mind that good debt invests in an asset that grows, while bad debt pays for something that quickly loses value. A one-time experience may only cost more in interest charges later down the road.
3 ways to have affordable experiences in 2025
If costs are the factor keeping you from activities this year, there are options to ensure fun doesn’t go completely out the window. Here’s how to travel, dine and find entertainment on a budget.
- Travel on a budget. You don’t need to book a $2,000 flight across the ocean to have an elite travel experience. Try making swaps like driving instead of flying and staying with friends instead of in a hotel. It helps if you can be flexible with your dates and destination — like not going to the Bahamas over spring break or Disney World on a weekend. Credit card travel rewards can also work in your favor, as long as you’re not going into debt to earn them. Learn these 6 tips to travel smart and stay out of debt.
- Dine on a budget. It’s generally more affordable to cook at home than dine out, and cookbooks and meal kits like HelloFresh and Blue Apron are fun ways to start. But if you enjoy the occasional evening at a restaurant, you can buy discounted gift cards, use credit card rewards through a portal like Chase Dining or tap into dining credits that come with many cards, especially those from American Express. Check out these best credit cards for restaurants.
- Find entertainment on a budget. Most cities and towns offer free live music, trivia, art exhibits, hobby meet-ups, library readings for kids, volunteer opportunities, holiday events and more. Check local websites and influencers’ social media profiles for upcoming events. Or, invite your friends over for a game night, potluck or karaoke. Free fun is waiting — you may just have to get creative.
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All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,484 adults. Fieldwork was undertaken between April 2-4, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
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