Pricey Pastimes: The Leisure Spending Survey

Everybody has felt the pinch so far this year, as the cost of living has surged due to rising fuel prices, low annual salaries and food costs jumping by a significant 10.8% in the past year, according to the U.S. Bureau of Labor Statistics. This has prompted many of us to adopt budgeting plans – following money-saving tips such as buying reduced groceries, redeeming coupons and avoiding topping up on petrol. But how does tightening the purse strings affect our day-to-day quality of life, particularly when it comes to leisure activities?

The Leisure Spending Survey, from CasinoGuardian, asked 2,000 US-based adults which payment methods they currently rely on for leisure activities, and which they have had to scale back to accommodate rising costs. It also reveals how people’s attitudes towards spending have changed since the start of the year, and how their decision-making has altered as a result of scrimping and saving.

Preferred Payment Methods Revealed

Everybody has a preferred way to pay whilst out and about – whether you are a committed carrier of cold, hard cash or prefer to put spending on a credit card and settle it the next month. But given the rising cost of living, how are Americans changing the way they pay for leisure activities such as a trip to the cinema, a meal out or buying new clothes? The survey found that the largest share of people are charging leisure costs to their credit cards (27%) – and, for 54%, the main reason for doing so is that they do not have the funds to cover a spontaneous drink or date night on their debit card.

A notable 15% of those surveyed are opting to use Buy Now, Pay Later services such as Klarna, Afterpay and PayPal when funding leisure activities online – for example, buying new clothes – whilst a further 8% are borrowing money from friends and family to cover spontaneous purchases. Although these options can work well for people who are confident they can repay the balance, they also run the risk of being caught short later, or ending up in debt as borrowing costs rise.

It may be that people feel comfortable using these payment methods for leisure activities because they can scale spending up or down as required (for example, opting only for a cheap main rather than also ordering a starter and dessert when out with friends). Yet it is not only leisure activities that prompt people to seek alternative payment methods in order to avoid making an immediate dent in their bank account.

According to the most recent Global Payment Trend Report from Worldpay, the majority of people in the US are turning to their credit cards to cover purchases made online – including those made via DoorDash, Deliveroo or Uber – or are using mobile wallets such as Apple Pay. Interestingly, Buy Now, Pay Later is more commonly used than Direct Debit or cash – probably because it is widely available for online transactions with most retailers.

Most-Used eCommerce Payment Methods in the U.S.

But regardless of how people choose to fund their free time, the question remains whether their pay cheque is covering the key costs. Respondents were also asked how their spending habits have changed since the start of the year as a result of rising prices, irrespective of how essential the expenditure is. The results show that the majority of people (79%) have had to alter their spending in some way, with one in five (21%) having to do so ‘significantly’. The demographic most affected by cut-backs were those aged 25-34, who do not yet earn as much as their older peers yet still have to cover many of the same costs – such as fuel, groceries, medical insurance and taxes.

Most Limited Leisure Activities

So, with people having to focus their pay cheque on covering essential costs, how are their social lives shaping up? The survey aimed to reveal which leisure activities people are putting on the back burner, and what they have replaced them with to remain stimulated in their downtime. One positive impact of cutting costs is that more people are swapping their streaming service subscriptions for reading – with an impressive 22% of those surveyed cancelling their Netflix, Hulu or Amazon accounts and instead investing in a library card or e-reader.

Other areas where people have had to cut costs include online shopping (11%) and trips abroad (13%), whilst almost one in ten (9%) have put their love lives on hold because they can no longer afford to go on dates with prospective partners. Sadly, 7% of respondents have had to rein in their spending when it comes to furry friends, either postponing plans to get a dog or spending less on treats and toys for their pet. Additional areas that saw reduced spending were games – either online slots or console titles – and gym memberships.

Top 5 most cut-down leisure activities

The survey also put a range of statements to respondents, asking which they could relate to. The most relatable statement was that people have had to dip into their savings or emergency funds – such as a 401(k) – to cover leisure costs, as their regular pay cheque has only met essential expenditure (19%). Quite a few have had to cancel trips or holidays booked last year because they no longer have the funds (10%), whilst almost a third (29%) of millennials do not know how they will ever afford a house unless they win the lottery or inherit a large sum.

Interestingly, some people are turning increasingly to investments and cryptocurrencies to keep their money secure (8%), while others are basing their next career move on financial benefit, with one in ten (9%) saying they are looking to switch jobs earlier than anticipated to secure a higher salary. For most of us, though, tightening the purse strings means seeing fewer people and going out less, with 17% saying they are unhappy with their social life at present but cannot change it without more money.

Summary

Regardless of what the next year brings in terms of rising costs, it is essential that people still make time for leisure activities and downtime to unwind from the working week. It is encouraging that some are swapping costly hobbies – such as buying new video games or going to the cinema – for money-saving alternatives, such as playing free games online or reading instead. However you prefer to relax, we hope you can do so in an affordable and sustainable way – and put your feet up as you deserve.