Low Bank Account Balance? Maybe Funflation Is The Problem.

Klaus Vedfelt via Getty Images "Funflation" isn\'t a new concept, but the spending phenomenon has been taking off in recent years.From “loud budgeting” to “money dysmorphia,” the personal finance world is filled with quippy new terms to describe recent spending trends.One of the sneakier financial realities of late is “funflation.” To help consumers understand this phenomenon and keep its negative effects at bay, HuffPost asked personal finance experts to break down what it means and share their advice for dealing with it.AdvertisementWhat is ‘funflation’?“Funflation” is a term economists have used to describe a recent pattern in consumer spending. Even amid rising prices for fun experiences like concerts, fancy meals and vacations, people are still splurging on these kinds of events and activities.“Even if it might not seem like a $400 concert tickets fits into your budget, for example, you might decide to buy it anyway because you know it will bring you a lot of joy and a great memory,” said Kimberly Palmer, a personal finance expert at NerdWallet.AdvertisementAlthough the term first took hold last summer, the trend has clearly persisted (and perhaps even grown) into this year.“The cost of having a good time seems to be rising higher than other expenses,” said Bola Sokunbi, the founder of Clever Girl Finance. “With everyone eager to make up for lost time after the pandemic, we’ve seen a surge in travel, concerts, festivals and dining out. People are craving experiences. Funflation is definitely alive and well this summer, as people are willing to spend more to enjoy their favorite activities.”AdvertisementAnd it’s certainly not just a summertime phenomenon.“I don’t think we will see it die down anytime soon,” said consumer finance and budgeting expert Andrea Woroch. “Fall and winter welcome plenty of special events, shows, concerts and outdoor exhibits like holiday light shows that will be