Our family of 4 spends around $500 a month on entertainment. This includes eating out, movies or anything else we go and do, concerts etc. Including babysitters. (
As you can see we don't eat out too much - if we do it is as a family at a semi fast food place - Moes anyone?)
We have annual passes to a zoo and aquarium that are not counted in the total. But they are about $100 each for the family for the year.
As others have said our vacation fund is separate.
Oh - I also used some of this $$ this week for a hair cut - sometimes it also covers groceries I forgot to pick up!