What is “funflation”?
We’ve all heard of “YOLO”, “money comes and goes” and “girl maths”. But when “funflation” entered the equation, we knew things were getting serious and that we had to keep up. So, what does this new funky term mean exactly?
Well, economists noticed a new spending pattern post-COVID, which is that we are all about having fun now. Statistics show that despite rising prices, people started going crazy for things that were “forbidden” during the months of lockdown, such as concert tickets and flights. This was the case for the majority of people, whether they could actually afford these purchases or not.
Some people call it “revenge spending”, others could argue that it’s a form of FOMO in fear of another lockdown, but what we’re sure of is that a lot of people have ditched saving for the moment.
According to a research done by American software company Intuit in January 2023, 2 in 3 Gen-Zers perceive money as a tool “to support their other interests in life”. So, whether it be the latest Eras Tour or the UEFA, people are prioritizing experiencing new things rather than being financially secure.
It’s like we cling onto the tiniest possible trends just to go all out and be as extra as possible. I mean, Barbenheimer? Spending up to 500 LE for a cinema ticket, a strikingly pink outfit and an overpriced box of popcorn? In this economy?
This could be due to the fact that people no longer see financial security as evitable, and thus have resorted to living life to the fullest instead. This is especially the case due to how COVID-19 have impacted everyone’s social life, which explains why the live entertainment industry is everyone’s number one priority right now when it comes to spending. They’re making up for all the days we spent bored to death stuck at home with nowhere to go!
But whether funflation is just a spending trend or will lead to a tragic financial downfall, it’s interesting to observe how sociology and finances interact in motion!
