'Funflation' soars this summer due to economic uncertainty

WICHITA, Kan. (KWCH) – Even though many people aren’t feeling confident about the economy, they’re still spending money on experiences like sporting events, concert tickets and fireworks this time of year, data shows.

Financial experts call this anomaly “funflation.”

Ted Rossman, a senior analyst at Bankrate, says it’s similar to the “lipstick effect”: “Even in bad economies, people buy lipstick; in fact, they often buy more of it.”

The American Pyrotechnics Association predicts Record fireworks sales in 2024And AAA predicts 5% increase in travel this July 4th compared to last year. Prices for fireworks and travel are flat or down compared to last year.

“You know, even if you’re worried about all these other financial aspects, you can still have a nice day on the boat or have a nice barbecue,” Rossman said. “It’s kind of a relatively small splurge in the grand scheme of things.”

Rossman thought 2022 was the year people would indulge in experiences, but 2024 is turning out to be a good year, too.

July 3rd is known among fireworks suppliers as the busiest day of the year. Mike Proctor with Advanced Financial Planning In Wichita, they say “funflation” is real, but we still need to be cautious.

“Take cash so that when you’re done with that amount, you’re done,” Proctor said.