LIVONIA, Mich. — Economists say inflation has cooled from its peak, but the cost of entertainment is still reshaping how families spend. From movie tickets to sporting events, the trend some are calling "funflation" is real — and it's forcing households to make tough choices.
Ari Shwayder, an economics lecturer with the University of Michigan, says when inflation is roughly 2% year-over-year and both steady and predictable, people are generally ready and able to spend.
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"That's something that we can live with and it sort of helps lubricate the economy a little bit," Shwayder said.
Shwayder says inflation from last July to this one nationwide was roughly 3.5%.
"Which is not terrible," Shwayder said.
Recreational activities, however, rose just over 2%.
"Movie tickets, sporting games… any sort of entertainment and recreation you're doing where you're not actually buying a good but paying for a service," Shwayder said. "Unsteadiness can drive household budgets a bit wonky."
Free Play Pinball Arcade in Livonia opened just two months ago. At $10 a wristband on Wednesdays during the summer, pricing is an important piece of the puzzle for owner Joe Koliba.
"We've been balancing a fine line," Koliba said.
It's the second location for Koliba, who has been in business for seven years in Fraser. Keeping prices the same since opening — and through the height of the pandemic — is something he calls a necessary, yet anything but easy, feat.
"It's hard for people to afford fun money," Koliba said.
Sally Turk, visiting from Wisconsin, found room in the budget for a play date at the arcade with her granddaughter, Raven Maniaci.
"Because as things get more expensive, you get more limited on the things you can do," Turk said.
The 9-year-old was thrilled to be there throwing skee-balls with her grandmother.
"And I was really excited," Maniaci said.
Turk said it was a chance for both of them to enjoy something together.
"And would be a great thing for both of us to enjoy," Turk said.
Retiree Jim McKeague and his wife say no matter the price, you have to make room in the budget for fun — even when the cost of things like gas and groceries soar.
"You've got to have time for yourself," McKeague said. "It has gripped our budget, but we still have to come out and have some fun," McKeague said.
Maniaci agreed, saying the outing left her wanting more.
"I feel awesome and wanting to go again," Maniaci said.
While fun can be expensive, families say you have to budget for it because there's a good chance it will balance out your life.
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