As the autumn season gets underway and storefronts fill up with eerie decorations and festive displays, nearly two-thirds of American consumers are planning to scale back their holiday purchases this year. According to a comprehensive new survey from LendingTree, persistent financial pressures are forcing shoppers to skip traditional seasonal items altogether, including staple purchases like Halloween costumes and candy.
The findings highlight a broader shift in consumer behavior as inflationary pressures and economic uncertainty continue to weigh heavily on households. While the fall holiday season has traditionally been viewed as a resilient retail period, the current economic climate is prompting widespread caution. About a third of holiday shoppers surveyed are actively cutting back on seasonal decorations alone, choosing to reuse older items or forgo them entirely to preserve their household budgets.
Generational Divides in Holiday Debt and Financial Strain
Although many consumers are spooked about the rising cost of living and their ability to afford festive purchases, the survey reveals that financial strain is not distributed equally across generations. Younger shoppers, in particular, appear far more willing to take on financial liabilities to participate in holiday traditions, even as their older counterparts pull back sharply.
Roughly four in 10—specifically 43%—of Gen Z respondents reported that they are likely to take on debt to fund their Halloween purchases this year. Millennials are not far behind, with 35% indicating they expect to rely on borrowed funds or credit cards to cover seasonal expenses. By contrast, older generations are exercising significantly more financial restraint. Only 14% of Gen Xers and a mere 2% of baby boomers said they anticipated taking on debt for the holiday.
For those who have already found themselves carrying a balance from past holiday spending or funding current celebrations, the aftermath is often accompanied by financial remorse. Among the respondents who admitted to taking on debt to fund their Halloween fun, 51% stated that they ultimately regretted overspending. When asked why they exceeded their budgets, these consumers pointed to two primary drivers: intense social pressure to keep up appearances and higher-than-anticipated prices across retail categories.
Rising Prices Hit Holiday Staples and Toys
The pressure on holiday budgets is driven in large part by noticeable price increases leading up to the season. Across the retail landscape, everyday goods and holiday-adjacent items have become more expensive, leaving consumers with less purchasing power than in previous years.
Children’s toys, which often represent a significant portion of fall and early holiday spending, have experienced particularly sharp price jumps. According to data from the U.S. Bureau of Labor Statistics’ Consumer Price Index, toy prices rose by 4.2% in a single month between August and September. When measured against the same period a year prior, toy prices jumped by an unadjusted 6.6% in September, underscoring the compounding effects of inflation on family-oriented celebrations.
To combat these rising costs, many shoppers have proactively altered their purchasing strategies. A significant portion of consumers have taken advantage of early-season discounts and started their holiday shopping ahead of schedule in an effort to stretch their dollars. Data from an Ibotta survey underscores this cautious mindset, revealing that nearly half (45%) of respondents feel their personal finances are currently insecure, while more than 70% stated that their primary focus this year is on saving money rather than discretionary spending.
Economic Pessimism and the Shift to Discount Retailers
Broader economic concerns are also shaping consumer sentiment as the holiday season progresses. While roughly seven in 10 shoppers in a recent Deloitte survey of 1,500 U.S. consumers reported that they could easily afford their Halloween purchases, a substantial minority of 42% anticipate that the broader economy will deteriorate further over the coming year. This underlying pessimism is directly influencing where and how consumers choose to spend their money.
To maximize their purchasing power, budget-conscious shoppers are increasingly turning to value-oriented retail channels. The Deloitte survey found that more than half of all shoppers are purchasing their Halloween items at traditional grocery stores, while 40% are directing their holiday shopping toward discount stores.
This trend toward value-driven retail is mirrored in separate findings from the National Retail Federation. According to the NRF’s research, nearly four in 10 consumers—representing approximately 39% of those surveyed—cited discount stores as their absolute top destination for securing Halloween products. As retailers navigate this shifting landscape, the heavy reliance on discount channels and early promotions demonstrates that consumers are prioritizing financial prudence over impulse buying, setting a cautious tone for the remainder of the broader holiday shopping season.