12 Ways Americans Spent Their Money Differently in the ’80s

The 1980s changed how Americans spent their money, thanks to new technology, shifting lifestyles, and big cultural trends.

Sophia Zapanta
May 8, 2025
3 min read

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In the 1980s, the U.S. economy grew, consumer credit expanded, and shopping habits shifted. Americans started spending more on electronics, entertainment, and image-driven purchases. These 12 spending habits show what made the decade unique — and how much things have changed since.

1. More Spent on Electronics

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Americans began buying gadgets like VCRs, cassette players, and early home computers. These products were seen as cutting-edge and became household staples. Technology spending became a growing part of family budgets. Owning the latest device started to matter more socially.

2. Home Entertainment Took Off

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Video rentals exploded in popularity, and owning a home television became almost universal. Families spent money on bigger screens and sound systems. Cable TV also expanded, leading to higher subscription costs. Staying in became just as exciting as going out.

3. Fitness Craze Meant More Gym Spending

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The aerobics boom and the rise of home workout videos changed health culture. Gym memberships and fitness classes became common, even trendy. People bought leotards, leg warmers, and exercise tapes. The fitness industry became a billion-dollar business.

4. Credit Card Use Increased Rapidly

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Credit cards became more widely accepted and aggressively marketed. Many Americans began relying on them for everyday purchases. Personal debt rose as a result, changing how people viewed spending. It marked the start of a shift away from cash.

5. Brand Names Took Center Stage

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From designer jeans to athletic shoes, branded goods became status symbols. Teenagers and adults alike paid more for the label. Advertising pushed brand loyalty hard across TV and print. The price often mattered less than the image.

6. More Fast Food and Dining Out

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Families began eating out more often, especially at fast food chains. Convenience played a big role in changing food habits. Spending on restaurants grew steadily throughout the decade. Drive-thrus and delivery became more common.

7. Mall Shopping Became a Pastime

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Malls weren’t just for buying things — they became social spaces. Teens especially spent money at chain stores, food courts, and arcades. Retail spending increased as shopping became more about experience. Department stores and specialty brands thrived.

8. Real Estate and Mortgage Costs Rose

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Interest rates were high in the early ‘80s, but by mid-decade, more people were buying homes. Suburban living expanded, and families spent heavily on real estate. Home décor and furniture also became big spending areas. “Keeping up with the Joneses” applied to square footage, too.

9. Luxury Cars Became Popular

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Driving a flashy car in the ‘80s said something about success. Imports from Europe and upscale models from U.S. brands were in demand. Leasing became more common, making luxury more accessible. For many, the car was as much about image as transport.

10. Video Games Entered the Home

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Arcades dominated early in the decade, but by the mid-’80s, home consoles like the NES became popular. Parents began budgeting for systems, cartridges, and accessories. The industry survived an early crash and then boomed, marking the start of gaming as a household norm.

11. Travel Spending Increased

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Thanks to a strong dollar and airline deregulation, travel became more affordable. Americans took more vacations, both domestic and international. Spending on flights, hotels, and leisure rose through the decade. The “travel bug” became more mainstream.

12. Stock Market and Investing Attracted Newcomers

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More Americans started investing, especially after the rise of 401(k)s and financial media. Wall Street entered pop culture with movies like Wall Street. Personal finance became a topic in magazines and talk shows. People began thinking long-term about their money.