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Join CFC expert John Suter, vice president of economic research, as he digs into the economics behind $7,000 NBA finals tickets and the value of experiences.
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Creators and Guests
What is Solutions Economic and Market Watch?
Listen to the latest economic insights from CFC experts John Suter, Sam Kem, and Antony Davies.
Hello, and welcome to the Economic and Market Watch podcast for the week of June 29, 2026. This is John Suter of CFC.
John Suter:We often hear, on a regular basis, investment advisors telling us how to save, where to cut back, how to avoid sales tricks, and why we should not overextend ourselves financially, and live above our means. It's not easy to follow these guidelines at times, especially in an economy with rising costs.
John Suter:What brings this to light is the most recently completed NBA basketball finals between the San Antonio Spurs and the New York Knicks.
John Suter:Average resale prices were sky high for New York Knicks final games at Madison Square Garden, making them among the most expensive tickets for a sporting event on record. One has to wonder, how can fans justify spending so much money on a professional basketball game? Many of our listeners, including myself, would first think that is absurd given the high cost of living that many Americans are currently struggling with. I don't know about you, but I could easily think of five material goods that I would rather buy versus spending thousands of dollars for a single NBA basketball game. However, there's another train of thought that says if you can truly afford a desired event, some experiences are worth the money.
John Suter:Do you think you might agree with this line of economic reasoning? If so, maybe you should try explaining to your spouse or family that the reason why you want to take an expensive vacation, concert, or sporting event is due to experiential consumption. The line of reasoning might not work, but you will certainly sound sophisticated in laying out why you wish to take action. I only wish I knew about this line of reasoning growing up.
John Suter:In our industry, think about the last CFC conference you attended.
John Suter:Was it the food that you remember, or the speakers that shared content that you found most interesting? Likewise, this could also be extended to how your cooperative treats its member owners. Rather than spending considerable money on cooperative bling, a better annual meeting or meet and greet with local entertainment might provide the type of customer experience that I'm trying to explain. These days, cooperative budgets are about seeking the biggest bang for the buck no matter how you're spending it, but emphasizing customer experience over free stuff is certainly worth consideration.
John Suter:You see, in consumer psychology, there's a concept called experiential consumption, which highlights how people derive far more lasting satisfaction from paying for experience than for material goods.
John Suter:A 2020 study published in the Journal of Experimental Social Psychology examined how these spending choices affect our daily lives. Researchers compared individuals who bought physical items such as clothes, jewelry, or electronics with those who pay for activities such as restaurant meals, concert tickets, trips, or sporting events like the Spurs versus the Knicks. The result was definitive. Experiential purchases yield vastly superior satisfaction.
John Suter:Ultimately, no matter the price tag, people get a much bigger, more consistent happiness boost from living through an event than from acquiring things.
John Suter:Why, might you ask? A major source of this joy is social connection. Whether it is a vacation with family, a shared meal with loved ones, or standing shoulder to shoulder with thousands of fellow fans in an arena, such moments foster a sense of community. Kind of surprising, but if you view your discretionary spending as an investment portfolio, the data suggests these purchases yield the highest emotional returns.
John Suter:For many Americans, spending money is never even a second thought. You know the old saying about having money burn a hole in your pocket, meaning you have the cash, but are incredibly eager to spend it right away, or you don't have a choice.
John Suter:How do I know this? Because only 24 to 27% of Americans have enough savings to cover six months or more of living expenses. Roughly one quarter of the population has no emergency savings at all, and barely half of all adults have enough saved to cover less than three months of expenses. Unfortunately, for these Americans, the first priority should be to change spending habits until a rainy day fund has been established.
John Suter:Conversely, there are others that hate spending money, period. Like me. We go through life and once in a while we splurge on travel or perhaps for a nicer hotel room with a view or an upgraded seat at a concert, and then we sweat the receipt. The regret factor weighs heavily upon us. That feeling of guilt starts to linger in on why did I spend my hard earned money on that, or maybe I should have sold my ticket for a sold out concert, or worse yet, skip the concert altogether and keep the money in the bank.
John Suter:But for those that are disciplined savers, we deserve to treat ourselves from time to time when the occasion arises. There are all sorts of ways to spend our money that make us feel good, like paying off our automobile or better yet, our house, and being consistent, generous givers to our church or favorite charities. But we also need to treat ourselves to experiences that will last a lifetime. And the next time you are pondering a purchase decision, then pull out the old experiential consumption theory to push you across the finish line.
John Suter:Because if you don't spend the money, I can guarantee you, your kids will. Happy splurging.
John Suter:That's it for today. As always, we thank you for listening, and be sure to download the Economic and Market Watch dashboard and intelligence brief. We'll talk to you soon.