Ever since the pandemic kept us pacing the floors of our homes, Americans have been itching to go out on the town. But how much someone is willing to spend on fun activities such as travel, dining and entertainment in 2024 varies by income. Some people might even go into debt for it.

According to a new Bankrate survey, 44 percent of U.S. adults expect to spend more on at least one fun purchase this year, while 38 percent say they would go into debt for at least one of these purchases. Further, more than one in four (27 percent) would be willing to go into debt to travel, and around one in seven (14 percent) would be willing to go into debt to dine out or attend a live entertainment event (13 percent).

If you’re looking to spend more on travel or entertainment this year, a travel card or cash back card could help you earn rewards as you’re having fun. Just keep in mind that with interest rates hovering close to 21 percent, going into credit card debt for the cost of fun may not be the best money move.

The past two years, Americans unleashed a tremendous amount of post-pandemic pent-up demand for travel, dining and live events. There are mixed signals regarding whether or not that will continue this year.

— Ted Rossman Senior Industry Analyst, Bankrate

Bankrate’s key insights on how Americans plan to spend on travel, dining and entertainment this year

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Key insights
  • Many Americans are willing to take on debt to travel, dine out and attend live entertainment in 2024. That’s 27 percent who would take on debt to travel, 14 percent who would take on debt to dine out and 13 percent who would take on debt to attend live entertainment (e.g., concerts, sporting events, theater performances, etc.).
  • While some Americans plan to spend about the same in these categories in 2024 as they did in 2023, the remaining half are divided on whether they’ll spend more or less. Thirty percent expect to spend more, and 31 percent to spend less on travel. Twenty-five percent expect to spend more, and 31 percent to spend less on dining out. Twenty-two percent expect to spend more, and 33 percent to spend less on live entertainment.
  • Higher-income households are driving spending this year, especially on travel. In all three spending categories, those earning $80,000 or more per year plan to spend more than those earning less. And 42 percent who earn at least $100,000 plan to spend more on travel in 2024.

Many U.S. adults are willing to take on debt for the sake of fun this year

Bankrate’s survey also shows that Americans are loosening their purse strings this year when it comes to discretionary spending on things like travel, dining out and live entertainment. Maybe it’s still post-pandemic celebrations. Maybe it’s relief over potentially avoiding a recession. Or maybe it’s revenge spending due to financial stress.

Whatever the reason, the survey finds that 38 percent of Americans are willing to take on debt for at least one of these types of discretionary purchases. Travel is the most popular option, with 27 percent of people willing to take on debt. Fourteen percent of people said they’d take on debt to dine out, and 13 percent would be willing to take on debt to attend a live entertainment event such as a concert, theater performance or sporting event.

Inflation and high interest rates have combined to squeeze consumers' buying power. Savings have diminished and debt has increased. Yet there's still a lot of demand for out-of-home entertainment. Some of that reflects a 'you only live once' mentality that intensified during the pandemic, and some of that is because many economic indicators — including GDP growth and the unemployment rate — are in favorable shape. — Ted Rossman | Bankrate Senior Industry Analyst

But a word of caution to Americans planning to use their credit card for large purchases. Credit card debt is one of the most expensive types of debt, and interest fees compound quickly. If you do decide to splurge on a fun purchase this year, other options like using your tax refund or a personal loan with a lower interest rate might make more sense.

Americans are split on whether they’ll spend more or less on activities in 2024 than they did in 2023

Not all Americans are planning to indulge in more fun this year than they did last year. Almost half plan to spend the same amount this year as they did in 2023 on travel, dining and entertainment. But the other half faces a pretty even split between spending more and spending less:

  • Travel: Thirty percent expect to spend more, 31 percent expect to spend less and 39 percent expect to spend about the same.
  • Dining out: Twenty-five percent expect to spend more, 31 percent expect to spend less and 44 percent plan to spend about the same.
  • Live entertainment: Twenty-two percent expect to spend more, 33 percent expect to spend less and 45 percent expect to spend about the same.

If you’re someone who’s planning to spend more on fun this year, make sure to maximize your credit card rewards. Points, miles and cash back can go a long way toward offsetting the cost of your next trip, dinner or concert. You could get rewarded for purchases you’re already planning to make.

Younger generations are more likely to spend more — and go into debt for — travel, dining out and entertainment

It’s understandable that many young people, like Gen Zers and millennials, may want to make up for lost time during the pandemic, even if they risk doing so at their own financial expense. This could be a driver behind why younger generations are more willing to spend on fun in 2024 than older generations:

  • Travel: Forty-four percent of Gen Zers, 37 percent of millennials, 20 percent of Gen Xers and 24 percent of boomers expect to spend more on travel in 2024 than they did in 2023.
  • Dining out: Thirty-nine percent of Gen Zers, 31 percent of millennials, 17 percent of Gen Xers and 18 percent of boomers expect to spend more on dining out.
  • Live entertainment: Forty-four percent of Gen Zers, 30 percent of millennials, 14 percent of Gen Xers and 9 percent of boomers expect to spend more on live entertainment.

Gen Zers and millennials are also much more willing to take on debt for these purchases:

  • Travel: Thirty percent of Gen Zers, 35 percent of millennials, 23 percent of Gen Xers and 22 percent of boomers are willing to take on debt for travel.
  • Dining out: Twenty-two percent of Gen Zers, 23 percent of millennials, 9 percent of Gen Xers and 8 percent of boomers are willing to take on debt for dining out.
  • Live entertainment: Twenty-two percent of Gen Zers, 23 percent of millennials, 7 percent of Gen Xers and 4 percent of boomers are willing to take on debt for live entertainment.

Another Bankrate study shows that young people are more willing to work extra hours or a side hustle, in addition to cutting expenses, than older generations when it comes to credit card debt repayment. Bankrate data also suggests that Gen Z also feels more overwhelmed by their debt than other generations. If you’re a young person considering taking on debt to pay for fun this year, just keep in mind that it could lead to more work and more stress down the road.

Men and parents of young kids are more willing to increase the cost of fun this year than their peers

When it comes to spending more on fun this year, two other groups of U.S. adults stand out.

Men (42 percent) are considerably more likely than women (35 percent) to be willing to take on debt for travel, dining or live entertainment. Men are also more likely than women to expect they’ll up their annual spending in each of those categories:

  • Travel: Thirty-two percent of men vs. 28 percent of women.
  • Dining: Twenty-nine percent of men vs. 21 percent of women.
  • Live entertainment: Twenty-seven percent of men vs. 18 percent of women.

Additionally, 58 percent of parents of children under the age of 18 say that they are more willing to take on debt for these spending categories in 2024, compared to 34 percent of non-parents and 31 percent of parents of adult children. Similar to America’s younger generation, these parents of young children may have struggled with a lack of activities outside the home in recent years and are aspiring for more family-friendly or date night fun this year.

Increased debt and spending on fun this year varies by income

Perhaps understandably, Bankrate’s survey finds that households with different income levels have different plans for spending in 2024. In particular, increased spending is being driven by households earning $80,000 or more annually.

There’s a firm slant toward spending less on these categories when households earn less than $80,000 per year. But among those earning $80,000 or more per year, the ratio shifts in favor of spending more. Travel especially stands out.

For example, just over four in 10 (42 percent) of households who earn at least $100,000 per year expect to spend more on travel in 2024, compared with only 21 percent who expect to spend less. But for those earning under $50,000, just one in four (25 percent) households expect to spend more on travel, while 37 percent expect to spend less.

The lowest-income households (those under $50,000 in annual household income) are also the least willing to take on debt for fun this year (37 percent). But even compared to those in higher earning brackets (43 percent earning more than $100,000 annually), households earning between $80,000 and $99,999 are the most willing (46 percent).

There’s a lot of inequality in the economy, and that’s very evident in these results. For example, there’s a big difference between someone who is avoiding credit card interest and earning free trips and cash back versus someone who’s financing purchases at a record-high 20.75% and can easily become trapped in an expensive debt cycle.

— Ted Rossman Senior Industry Analyst, Bankrate

3 questions to ask before you spend more on fun — or go into debt — this year

It might be tempting to join the one in three Americans planning to splurge on travel, dining and entertainment this year. But to make sure that spending fits into your financial goals, ask yourself these three questions first.

1. Can you afford to spend more without going into debt?

Before swiping your credit card for that fun expense, take a look at your budget to see how much wiggle room you have. It’s best practice to pay off your credit card bill in full each month. If additional spending means you have to carry a credit card balance, look for ways to cut back spending in other categories instead.

For instance, you might spend less on clothing to free up money for the trip you want to take. Or you could cut back on monthly streaming subscriptions to make room for more in-person fun.

And while you can use a rewards card to earn on purchases you plan to make anyway, just remember that chasing credit card rewards while in debt can be futile. But if you’re using your card responsibly, rewards could help pay for even more fun activities this year.

2. How are your savings looking this year?

Four in five Americans (81%) didn’t increase their emergency savings last year, according to another Bankrate survey. And nearly one-third (32 percent) of Americans actually had less savings at the end of the year than they did at the start of 2023.

Before spending more on fun or going into debt this year, consider the state of your savings. Experts recommend having between three and six months’ worth of living expenses on hand to cover job loss or unexpected bills. After paying for your monthly necessities — like utilities, groceries and gas — it’s best to save some of your remaining income before spending it on discretionary purchases.

Try using Bankrate’s savings calculator to see how much you’d need to set aside each month to reach your savings goal. Then, you’ll know if you can afford some extra bucks for fun.

3. If you go into debt, how much will that debt cost you?

Finally, debt is expensive, and credit card interest rates are at an all-time high. And while a trip, nice dinner or concert is enjoyable from time to time, its true cost will be much higher than the original price tag if you go into debt to pay for it.

For instance, imagine you take an amazing vacation, but wind up racking up a $2,500 balance on your credit card. If your card carries a 20.75% interest rate and you take 24 months to pay off the balance, you’ll ultimately pay an extra $575 in interest — pushing the total cost of your trip to over $3,000.

Before choosing to carry a balance or take on debt to pay for fun this year, use Bankrate’s credit card payoff calculator to learn how long it will take to repay that debt and at what cost. Then, you can decide whether the interest charges are worth the experience.

Methodology

  • Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,276 U.S. adults. Fieldwork was undertaken between March 4-6, 2024. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results.