Hobby spending is on the rise

Like so much else in the economy, the price of fun is on the rise. To be more specific, we’re talking about hobbies — recreational activities, the ways we fill our free time.

According to recent analysis from the Bank of America Institute, consumers aren’t shying away from those higher prices. They’re splurging on their hobbies. That’s partially because people are shifting away from more expensive activities, said Joe Wadford, an economist at the Bank of America Institute.

“I think consumers are continuing to gravitate toward hobbies, even if prices are rising, because they're still significantly less expensive than, say, travel, right? Or even a night out.”

He said this spending is also a reflection of something called the lipstick index, where consumers spend on little luxuries during times of economic uncertainty.

“Whether you want to call it ‘the lipstick index,’ ‘the little treat economy,’ ‘trading down,’ I think people are very much finding ways to have fun and to splurge, but they're doing it in a financially responsible way,” said Wadford.

Sometimes that small splurge takes the form of a hobby like knitting or skiing. But sometimes it’s something simpler. For Wadford, it’s a cup of joe. “I'll treat myself to a cup of coffee. I'm very much one of those people. I'm very much a pumpkin spice diva.”

But folks are feeling the rising prices, like Travoris Hipkins in Maryland. He does a lot of fishing, and it costs him.

“For example, I literally just came from the Tochterman fishing shop down the city, and I spent $447, and I got a new, I got a new rod, a new reel, some weights, some hooks,” said Hipkins.

But he said that even if those rods and reels spiked in price, it wouldn’t stop him from getting out on the water.

“Whether you're into cars, whether you're into fishing, whatever the hobby may be,” he said, “and I think it just comes down to if it's something that you're truly passionate about, then the price or the money aspect doesn't really matter because it brings you joy in life.”