Inflation and persistent economic anxiety are casting a long shadow over the upcoming holiday season, forcing many consumers to rethink their traditional spending habits. According to a recent LendingTrust survey, nearly two-thirds of shoppers now plan to skip certain purchases this year, cutting back even on core seasonal staples such as costumes and candy. As rising costs continue to strain household budgets across the country, the ways in which Americans celebrate seasonal festivities are undergoing a noticeable shift.
The financial strain is not distributed evenly across different age groups, however. Younger demographics, in particular, appear far more vulnerable to the immediate pressures of holiday spending. Roughly four in 10, or 43%, of Generation 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 to cover seasonal costs. By contrast, older generations are showing significantly more restraint or financial stability; only 14% of Generation Xers and a mere 2% of baby boomers said they anticipated taking on debt for the holiday.
For those consumers who have already turned to credit cards or other forms of borrowing to finance their Halloween activities, the aftermath often brings a sense of financial remorse. Among the respondents who admitted to taking on debt for seasonal fun, a striking 51% reported that they regret overspending. When asked why they exceeded their initial budgets, these consumers most frequently pointed to two primary drivers: intense social pressure to keep up appearances and higher-than-anticipated price tags on holiday merchandise.
These consumer anxieties are well-founded, as price increases have steadily crept across retail shelves ahead of the festivities. Seasonal essentials, including items typically purchased for children, have seen notable upward price adjustments. According to data from the U.S. Bureau of Labor Statistics’ Consumer Price Index, toy prices jumped 4.2% between August and September alone. When compared to the same period a year prior, unadjusted figures from the index reveal that toy prices surged by a sharp 6.6%, further squeezing household purchasing power.
In an effort to stretch their dollars and manage tighter budgets, a substantial number of holiday shoppers have proactively adjusted their shopping strategies. Many have taken advantage of early promotions and discounts, attempting to stay ahead of ongoing inflationary pressures. Broader consumer research underscores this cautious mindset. An Ibotta survey found that nearly half—about 45%—of respondents feel their personal finances are currently insecure, while more than 70% stated that their primary focus for the year is actively saving money rather than discretionary spending.
Despite these widespread financial concerns, a baseline of consumer confidence remains visible in certain segments. A Deloitte survey of 1,500 U.S. shoppers revealed that roughly seven in 10 respondents felt they could easily afford their Halloween purchases. At the same time, however, the survey highlighted underlying apprehension regarding the macro-economic environment, with 42% of shoppers anticipating that the broader economy will deteriorate over the coming year.
This cautious economic outlook is actively reshaping where consumers choose to spend their hard-earned money. Rather than patronizing specialty holiday boutiques or department stores, shoppers are increasingly turning to value-oriented retailers. The Deloitte survey noted that more than half of all shoppers are purchasing their Halloween items at traditional grocery stores, while 40% are directing their shopping trips toward discount stores in search of better deals.
This trend toward value shopping is further corroborated by findings from the National Retail Federation. Their separate analysis indicated that nearly four in ten consumers, or 39%, specifically cited discount stores as their primary destination for purchasing Halloween-related products. As retailers navigate this shifting landscape, the emphasis on affordability, early promotional engagement, and pragmatic spending continues to define the seasonal retail market.