The spooky season is officially here, but for many households across the country, the real fright isn’t coming from haunted houses or ghost stories—it is coming from the checkout lane. According to a newly released LendingTrust survey, nearly two-thirds of shoppers are planning to scale back or entirely skip certain purchases this year. Even traditional holiday staples, such as costumes and candy, are facing unprecedented scrutiny as everyday consumers tighten their belts in response to persistent economic pressures.
While retailers traditionally count on the autumn holiday season to kick off the final quarter’s surge in consumer spending, current sentiment suggests a much more cautious approach. About a third of holiday shoppers are actively cutting back on seasonal decorations this year, opting to reuse old items or forgo decorating their homes altogether. This pullback reflects a broader trend of cautious consumer behavior that has been building throughout the year, driven by lingering concerns over the cost of living and shifting economic expectations.
Generational Divides in Holiday Debt and Financial Strain
Although many consumers are spooked about affording their Halloween purchases, financial strain is not distributed evenly across the population. Younger generations, in particular, appear to be bearing the brunt of the holiday financial burden, often turning to credit and loans to fund their seasonal celebrations.
Roughly four in ten—specifically 43 percent—of Gen Z respondents told surveyors that they are likely to take on Halloween debt this year. Millennials are not far behind, with 35 percent admitting they expect to rely on borrowed funds to cover their seasonal expenses. By contrast, older generations are showing significantly more restraint. Only 14 percent of Gen Xers and a mere 2 percent of baby boomers said they anticipated taking on debt for the holiday, highlighting a stark generational divide in spending habits and financial vulnerability.
For those who have already taken on debt to fund their Halloween festivities, the aftermath is often filled with buyer’s remorse. More than half—51 percent—of those respondents admitted that they regret overspending. When asked why they exceeded their initial budgets, these consumers pointed to two primary culprits: social pressure to keep up appearances and higher-than-anticipated prices across retail categories. The desire to showcase elaborate costumes, throw memorable parties, or maintain neighborhood traditions often clashes heavily with the harsh reality of modern retail pricing.
Inflation and Rising Prices Across Retail Sectors
The pressure on holiday budgets is not just a matter of consumer psychology; it is firmly rooted in measurable inflation. Prices for goods leading up to Halloween have steadily increased, impacting everything from seasonal treats to children’s toys.
According to data from the U.S. Bureau of Labor Statistics’ Consumer Price Index, toy prices alone jumped 4.2 percent between August and September. When compared to the same period a year ago, toy prices surged by an unadjusted 6.6 percent in September. Because many families purchase gifts, novelties, and costume accessories around this time of year, these compounding price hikes make it increasingly difficult for parents to maintain past spending habits without drastically altering their overall household budgets.
To combat these rising costs, many shoppers are changing how and when they purchase holiday goods. Taking advantage of early-season discounts and sales has become a primary strategy for stretching limited financial resources. According to an Ibotta survey, nearly half of respondents stated that their overall personal finances feel insecure, and over 70 percent emphasized that their primary financial focus this year is saving money rather than splurging.
Economic Outlook and the Shift Toward Value Shopping
Consumer caution is also being fueled by broader anxieties regarding the future state of the economy. While seven in ten shoppers report that they can comfortably afford their current Halloween purchases, a substantial portion of the population remains pessimistic about what lies ahead. A Deloitte survey of 1,500 U.S. shoppers found that roughly 42 percent anticipate the economy will deteriorate further over the coming year.
This underlying economic unease is directly altering retail traffic patterns, benefiting value-oriented merchants at the expense of traditional department stores and specialty shops. More than half of all shoppers are now turning to traditional grocery stores to pick up their Halloween items, while 40 percent are choosing discount stores as their primary retail destination for the holiday.
Similarly, a separate survey conducted by the National Retail Federation underscored this shift toward value-driven retail. Nearly four in ten consumers—39 percent—specifically cited discount stores as their top destination for purchasing Halloween products this season. As consumers navigate an increasingly complex economic landscape marked by inflation, financial insecurity, and a looming sense of caution, retailers across the board are being forced to adapt to a marketplace where value, affordability, and practical budgeting reign supreme.
