Despite the uncertainty surrounding the economy, data shows that people are still willing to spend money on experiences such as sporting events, concert tickets, and fireworks. This phenomenon has been dubbed “funflation” by financial experts.
Ted Rossman, a senior analyst with Bankrate, compares this trend to the “lipstick effect,” where people continue to purchase small luxuries even during tough economic times. The American Pyrotechnics Association predicts record-high fireworks sales in 2024, and AAA forecasts a 5% increase in Fourth of July travel compared to the previous year, with prices remaining flat or even decreasing.
Many individuals prioritize having fun and enjoying experiences like boating and cookouts. Rossman anticipated that 2022 would be a year of splurging on experiences, but it seems that 2024 is also shaping up to be a good year for this trend.
July 3 is known as the busiest day of the year for fireworks suppliers, highlighting the popularity of these experiences. Mike Proctor from Leading Edge Financial Planning in Wichita acknowledges the reality of “funflation” but emphasizes the importance of being cautious with spending. He suggests setting a budget and sticking to it to avoid financial strains.