The Cost of Having Fun - Consumer Expenditures For Recreation

Americans are always finding new ways to spend their free time and money. In good economic times, people generally have more discretionary income to spend on leisure and recreation. The U.S. Bureau of Labor Statistics reported in Consumer Expenditures in 2002 that in 2002 Americans spent an average of $2,079 on entertainment, slightly more than the $1,953 that was spent in 2001. (See Table 2.1.) The study further noted that persons aged thirty-five to forty-four spent the most on entertainment ($2,685), and those over seventy-five spent the least ($896).

Research by the Bureau of Economic Analysis (BEA), a division of the U.S. Department of Commerce, showed that consumers steadily increased their total spending on entertainment from 1998 through 2002. According to the BEA's National Income and Product Accounts Tables, in 2002 Americans spent a total of $628.3 billion on recreation, up from $604 billion in 2001. Almost one-fifth of those dollars ($119.1 billion) was spent on video and audio goods. Toys and sports supplies accounted for $59 billion. According to the BEA, Americans spent $34.6 billion in 2002 to see such spectator amusements as performing arts, movies, and spectator sports, up from $26.2 million five years earlier. (See Table 2.2.)

Although total expenditures for various forms of entertainment increased from 1998 to 2002, most goods and services experienced incremental or gradual growth. Examples of goods and activities that sustained modest increases were books and maps, gardening supplies (flowers, seeds, and potted pants), admissions to spectator amusements, and clubs and fraternal organizations. (See Table 2.2.)