Pandemic Fuels You Only Live Once Spending as Americans Splurge on Travel and Entertainment

Americans are saving less but spending more on experiences like travel and concerts in a "you only live once" mentality following the pandemic.

Spending on international travel and live entertainment surged 30% last year while the personal savings rate fell to lows not seen since the Great Recession.

Unlike past financial crises that led to frugality, the pandemic starvation of human connections has left a legacy of splurging on missed experiences.

Higher incomes, stock gains, and leftover pandemic savings have enabled continued spending despite inflation.

Economists expect this experiential spending era to continue barring a major economic shock, supporting service jobs but contributing to high inflation.