Study: Hobby Spending Varies Significantly by Generation
A new Bank of America Institute study analyzing credit card data reveals significant generational differences in hobby spending, with Baby Boomers and older millennials leading expenditures.
Spending on hobbies has seen a notable increase, rising 7.9% year-over-year according to a recent analysis by the Bank of America Institute. The study, which examined credit card data over a three-month period ending in August 2026, suggests a trend of increased spending on leisure and recreational activities, a phenomenon sometimes referred to as "funflation."
The research, which delved into spending habits across Gen Z, millennials, Gen X, and Baby Boomers, found that older millennials currently invest the most in their hobbies. This demographic, typically aged 30-40, may be allocating funds towards their own interests as well as covering the costs for young children's activities.
Baby Boomers, generally individuals over 55, rank second in hobby expenditure. This increased spending could be attributed to having more disposable income and leisure time to pursue personal interests. In contrast, Gen Z and younger millennials report lower spending on hobbies, potentially reflecting their career stage and income levels.
The report also highlighted that some individuals are successfully transforming their hobbies into profitable business ventures. This indicates that for some, leisure activities offer not only personal satisfaction but also economic opportunity. Overall, the importance placed on hobbies for personal fulfillment appears to be growing across various age groups.