How Much Do Americans Spend on Entertainment?

Entertainment spending is a significant aspect of American household budgets, encompassing a wide range of discretionary expenditures on leisure activities, hobbies, and cultural experiences. This category reflects how individuals and families allocate resources beyond necessities to enhance their quality of life. Understanding these spending patterns provides insights into consumer behavior and contributes to the broader economic landscape.

Understanding Overall Spending

American households dedicate a notable portion of their budget to entertainment. In 2023, the average U.S. household allocated approximately $3,635 annually to entertainment, or $303 per month, representing about 4.7% of their total yearly expenditures. Projections for 2025 suggest monthly entertainment spending may rise to around $332. Following a dip during the initial phase of the pandemic, entertainment expenditures rebounded substantially in 2021, increasing by 22.7%. This brought household entertainment spending back to 2018 levels, at approximately 5.3% of total expenditures.

Breakdown by Category

Entertainment spending diversifies across various categories, reflecting a broad spectrum of consumer interests.

Live entertainment, including concerts, theater, and sporting events, constitutes a notable portion. In 2023, the average U.S. household spent $951 annually on fees and admissions for such events. Younger demographics, particularly Gen Z, have shown a growing inclination towards live music events, with this group spending an average of $38 per month on concerts in the second quarter of 2024, exceeding the overall U.S. average of $31.

Streaming services for video and music have become a pervasive element of modern entertainment budgets. A March 2025 Deloitte report indicated that American households spend an average of $69 per month on four paid streaming services. Separately, a Parks Associates report noted that the average U.S. internet household spent approximately $63 per month on over-the-top (OTT) subscription video-on-demand (SVOD) services, a decrease from $90 in 2021.

Gaming, encompassing video games, board games, and mobile applications, also represents a significant expenditure. North American gamers spend an estimated $325 per year on gaming. More specifically, projected data for 2025 suggests an average monthly spending of $70 on video gaming. Total consumer spending on video games in the United States reached $59.3 billion in 2024.

Hobbies and recreational activities cover a wide array of interests. The average American spends approximately $98 each month on their primary hobby, amounting to an annual expenditure of about $1,176. While gardening and reading are relatively affordable hobbies, costing around $65 and $66 per month respectively, more specialized pursuits like making music can be considerably more expensive, averaging $174 monthly.

Expenditures on reading materials, such as books, magazines, and newspapers, remain a consistent part of entertainment spending. In 2021, the mean annual expenditure on books per consumer unit was $35.60. Consumer spending on recreational reading increased significantly during the COVID-19 pandemic, rising by 22.9% in 2020 and an additional 1.8% in 2021, to reach a total of $15.2 billion.

Variations in Spending

Entertainment spending varies considerably across different demographic and economic groups, influenced by factors such as disposable income, age, household composition, and geographic location.

Higher income levels generally correlate with greater entertainment expenditures. For instance, in 2013, households in the lowest 20% income bracket spent approximately $1,000 on entertainment, compared to over $5,133 for those in the highest 20% bracket. Educational attainment also plays a role, with college-educated households spending significantly more on admissions to events and cultural venues than those without a college degree.

Age groups exhibit distinct spending patterns. Overall household expenditures tend to follow a “hump” shape over the lifecycle, increasing with age up to the 45-54 group, then gradually declining for older demographics. Younger consumers (13-24) allocate more leisure time and spending towards online videos, gaming, and social media, while older individuals (35+) favor traditional television and movies. For example, Millennials spend more on gaming, averaging $86 per month, compared to the overall average gamer spending.

Household composition also influences entertainment outlays. During the pandemic, married couples without children demonstrated the highest entertainment spending, utilizing 6.2% of their household budget for such activities. Married couples with children followed closely, dedicating 5.8% of their income to entertainment.

Geographic location also presents differences in entertainment spending. Urban areas typically show significantly higher daily entertainment expenditures, averaging $156, compared to rural areas at $89 per day. Regional trends also emerge, with the Midwest leading the country in average annual entertainment spending at $3,368, dedicating 5.6% of their overall household budget to entertainment.

Sources of Spending Data

Data on American entertainment spending primarily originates from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (CE). This comprehensive survey is a key source for understanding the buying habits of U.S. consumers, providing insights into income, demographics, and detailed expenditures.

The CE is conducted through two main components: an Interview Survey, which captures larger or recurring purchases, and a Diary Survey, designed to record smaller, more frequent expenditures. The information collected from both surveys is then combined to produce estimates that represent the entire United States population.

While the CE provides valuable data, it is important to acknowledge certain limitations when interpreting the results. The data is largely self-reported, which means it can be subject to non-response bias or underreporting of certain expenditures. Additionally, as with any survey based on samples, the data may be affected by sampling errors. Despite these considerations, the BLS CE remains a primary resource for analyzing consumer spending patterns, including those related to entertainment.