As the autumn season settles in and storefronts fill up with jack-o’-lanterns, artificial cobwebs, and festive displays, a distinct chill is in the air for retailers and consumers alike. While the fall holiday season traditionally kicks off months of heavy consumer spending, a new LendingTrust survey reveals a much more cautious mood among the American public this year. Nearly two-thirds of shoppers now plan to skip certain purchases altogether, holding back on traditional holiday staples like costumes, candy, and seasonal decorations as persistent economic anxieties and rising costs catch up with household budgets.
The findings underscore a broader shift in consumer behavior that has increasingly defined retail trends throughout the year. Rather than diving headfirst into holiday spending with abandon, shoppers are carefully calculating every dollar. The hesitation is not limited to luxury items or big-ticket purchases; even modest seasonal essentials are facing scrutiny as consumers grapple with tight financial margins. About a third of Halloween shoppers specifically report that they are cutting back on decor for the season, opting to reuse old items or forgo decorating their homes entirely to save money.
This cautious approach comes as little surprise given the broader economic backdrop. Price increases have been felt across nearly every category of consumer goods, and the months leading up to the autumn holidays have proven particularly expensive for families. According to data from the U.S. Bureau of Labor Statistics’ Consumer Price Index, prices for children’s toys jumped 4.2% between August and September alone. When compared to the same period a year ago, toy prices surged an unadjusted 6.6%, placing an extra burden on parents trying to balance holiday fun with everyday expenses.
The Generational Divide in Holiday Debt and Financial Strain
Although many consumers are clearly spooked about the cost of maintaining holiday traditions, the financial strain is not distributed evenly across different age groups. Younger consumers, in particular, appear far more willing to stretch their finances—and take on debt—to participate in seasonal festivities.
According to the LendingTree survey, roughly four in 10, or 43%, of Generation Z respondents said they are likely to take on Halloween-related debt this year. Millennials are not far behind, with 35% indicating they expect to rely on borrowed funds to cover their seasonal expenses. By contrast, older generations are showing significantly more restraint. Only 14% of Generation X respondents and a mere 2% of baby boomers reported that they anticipate taking on debt for the holiday.
For those who do cross the line into borrowing to fund their Halloween celebrations, the aftermath often brings a heavy dose of buyer’s remorse. Among respondents who reported taking on debt for the holiday, 51% admitted that they regretted overspending. When asked why they exceeded their initial budgets, these consumers most frequently pointed to two main culprits: the pressure to keep up appearances and higher-than-anticipated prices at the register. The social and digital media pressure to present picture-perfect costumes and elaborate home displays appears to be driving younger demographics to spend beyond their means, even during times of economic uncertainty.
Strategies for Stretching Tight Budgets
In response to these financial pressures, holiday shoppers are actively adopting new strategies to protect their wallets. Many consumers are taking advantage of early-season discounts and starting their shopping much earlier in the year to spread out the financial impact.
Financial insecurity remains a widespread concern. An Ibotta survey found that nearly half—45%—of respondents feel their personal finances are insecure, with over 70% stating that their primary focus this year is saving money rather than spending it. This mindset has reshaped where and how consumers shop for seasonal goods.
While a Deloitte survey of 1,500 U.S. shoppers found that about seven in 10 respondents believe they can easily afford their Halloween purchases, a persistent underlying pessimism remains. Roughly four in 10, or 42%, of those surveyed anticipate that the broader economy will deteriorate in the year ahead. This lack of economic confidence is driving shoppers toward value-oriented retailers where they can stretch their dollars further. The Deloitte survey revealed that more than half of shoppers are buying their Halloween items at grocery stores, while 40% are turning to discount stores to find more affordable options.
These findings align closely with separate research from the National Retail Federation, which found that nearly four in 10 consumers—about 39%—cite discount stores as their top destination for purchasing Halloween products this year. As traditional retailers and specialty holiday pop-up shops compete for consumer attention, the emphasis on value, discounts, and low-cost alternatives has become the defining characteristic of the season. Whether consumers are hunting for candy deals at local supermarkets or browsing discount aisles for budget-friendly costumes, the overarching message from the American shopper this year is clear: caution and financial prudence have officially taken center stage.
