Cutting back on fun: a third of Americans plan to reduce spending on vices

Cutting back on fun: a third of Americans plan to reduce spending on vices
Your clients are likely to be spending on vices, depending on their generation.
FEB 07, 2025

We all like some fun, but when finances are stretched it means tough choices about what’s really important.

Americans have plenty of vices to choose from – including alcohol, drugs, and gambling – and a new survey reveals that their choices vary by generation. But for around one third of all adults, current economic conditions mean they plan to cut back on spending on their preferred recreational activities.

Bankrate.com’s new research has identified that 84% of respondents spend money on at least one of six ‘financial vices’ including alcohol, lottery tickets, casino games, tobacco/cigarettes/e-cigarettes, sports betting, and marijuana/recreational cannabis. Half said they typically spend on these monthly.

Alcohol (66%) and lottery tickets (64%) are the most commonly bought of the six vices, followed by casino games (40%), tobacco/cigarettes/e-cigarettes (30%), sports betting (29%), and marijuana/recreational cannabis (28%). Overall, 70% of respondents spend on gambling, but just 25% say they do so monthly.

Gen Zs are mostly likely to spend on sports betting and casino games, Millennials lead for spending on tobacco/cigarettes/e-cigarettes and marijuana/recreational cannabis, while Gen Xers favor lottery tickets and alcohol.

Around one fifth across all generations plan to increase spending on these vices in 2025, one third plan to cut back, and almost half will maintain current spending levels.

 

But can they afford it?

 

“It’s fine to have some fun and engage in the occasional splurge, but it’s important to do so within the constraints of a solid budget,” said Bankrate Senior Industry Analyst Ted Rossman. “By all means, set aside some fun money, but make sure you’re also checking off other priorities such as saving

for a rainy day and paying down high-cost debt. It’s worth noting that only about two in five Americans can afford to pay for a $1,000 emergency expense from their savings, while roughly half of credit cardholders carry debt from month to month at an average interest rate north of 20%.”

 

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.