Nearly two-thirds of shoppers plan to skip some purchases this year, cutting back on staple items like costumes and candy as financial pressures mount ahead of the festive season. According to a new LendingTrust survey, the ongoing pinch of inflation and broader economic anxiety are fundamentally altering how consumers approach seasonal shopping, forcing many to make difficult compromises on traditions that were once considered essential.
While the allure of spooky celebrations remains strong for millions of households, the reality of everyday expenses is taking a heavy toll. About a third of Halloween shoppers are scaling back significantly on decorations for the season, opting to reuse older items or forgo festive displays entirely rather than absorbing higher retail prices. This cautious approach reflects a broader trend of tightening wallets that has persisted throughout the retail landscape, impacting not just major discretionary holidays, but the smaller seasonal events that punctuate the retail calendar.
The financial strain, however, is not distributed evenly across different generations. While older consumers appear largely insulated or disciplined in their spending habits, younger demographics are feeling the crunch far more acutely, often turning to credit to bridge the gap between their desires and their bank accounts.
Generational Divides in Holiday Debt
Though many consumers are visibly spooked about affording their Halloween purchases, some segments of the population are clearly more financially strained than others. The LendingTree survey highlights a striking generational divide when it comes to funding seasonal celebrations through borrowing. Roughly four in 10, specifically 43 percent of Gen Z shoppers, said they are likely to take on Halloween debt this year, followed closely by 35 percent of millennials.
By contrast, older generations are showing a much higher degree of financial restraint. Only 14 percent of Gen Xers and a mere 2 percent of baby boomers reported that they would take on debt to finance their Halloween festivities. This disparity underscores the unique economic pressures facing younger consumers, who may have lower baseline savings, higher relative housing and living costs, and less financial cushion to absorb sudden price increases.
Among the respondents who have taken on debt to fund their Halloween fun, 51 percent admitted that they ultimately regret overspending. These consumers cited intense social pressure to keep up appearances—particularly amplified by digital sharing and cultural expectations—alongside higher-than-anticipated prices as the top two reasons why they exceeded their initial budgets. The desire to deliver a memorable experience for children, friends, or social media audiences often clashes directly with the harsh reality of their monthly statements.
The Rising Cost of Seasonal Staples
This buyer’s remorse is fueled in large part by steady price increases leading up to the holiday, touching everything from confectionery items to children’s toys and seasonal apparel. Toy prices alone experienced a notable jump right ahead of the peak shopping window, rising 4.2 percent between August and September, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index. Compared to the same period a year earlier, toy prices jumped 6.6 percent in September, highlighting persistent inflationary pressures within specific retail categories that parents rely on for gifts and holiday entertainment.
As everyday goods become more expensive, holiday shoppers have increasingly had to adapt by taking advantage of early discounts and altering their shopping timelines to stretch their limited budgets. Nearly half, or 45 percent of respondents to a separate Ibotta survey, indicated that their overall finances feel insecure, and over 70 percent emphasized that they are focusing heavily on saving money this year rather than indulging in impulse purchases.
This defensive financial posture has transformed shopping habits across the board. Consumers are no longer waiting until the final week of October to pick up costumes and candy; instead, they are hunting for bargains weeks in advance, comparing prices online, and shifting their loyalty away from traditional specialty stores toward more affordable retail environments.
Navigating an Uncertain Economic Landscape
Even as a significant portion of the population manages to navigate the season without severe distress, underlying pessimism about the broader economy continues to shape consumer behavior. Though seven in 10 shoppers reported in a Deloitte survey that they can easily afford their current Halloween purchases, roughly four in 10, or 42 percent, actively anticipate the economy deteriorating further in the year ahead. This cautious outlook prevents many households from loosening their purse strings, even for celebratory occasions meant to bring joy and community engagement.
To cope with these financial anxieties, consumers are strategically redirecting where they spend their hard-earned dollars. The Deloitte survey found that more than half of shoppers are buying their Halloween items at grocery stores, where they can conveniently bundle holiday goods with essential weekly grocery trips. Meanwhile, 40 percent of shoppers are turning to discount stores specifically to source their holiday needs, prioritizing value over brand name or specialized selection.
This shift toward budget-friendly retail channels is further corroborated by data from the National Retail Federation. Their findings reveal that nearly four in 10 consumers, specifically 39 percent, cited discount stores as their top destination for Halloween products this year. Retailers that can offer compelling price points, bulk packaging, and reliable value are capturing the lion’s share of consumer attention, while high-end seasonal boutiques face a more challenging environment.
Ultimately, the changing dynamics of Halloween spending serve as a bellwether for the broader retail economy. As consumers balance the desire to maintain cherished traditions with the practical necessities of financial survival, retailers must adapt to an environment defined by heightened price sensitivity, strategic early shopping, and a pervasive caution regarding the future.
