The ghosts, goblins, and ghouls of the autumn season are arriving alongside a distinct economic chill this year, as persistent inflation and tightening household budgets force millions of consumers to rethink their traditional holiday spending. According to a comprehensive new survey from LendingTree, nearly two-thirds of shoppers across the United States are planning to skip or curtail certain holiday purchases this year. The cutbacks are not just affecting discretionary luxury items; they are hitting close to home, extending directly to essential seasonal staples such as festive costumes, candy, and home decorations.
The findings highlight a broader national anxiety regarding personal finances, as American households grapple with the compounding pressures of rising consumer goods prices and economic uncertainty. While holidays like Halloween have historically remained resilient even during economic downturns, driven by cultural traditions and the strong demand for family-friendly celebrations, the current retail landscape suggests that even routine seasonal spending is facing severe scrutiny. Retailers that rely heavily on the autumn shopping rush are finding that consumers are increasingly selective about where and how they allocate their discretionary dollars.
While the overarching trend points toward widespread caution, the financial strain of the holiday season is not being felt equally across all demographic groups. The LendingTree survey reveals a stark generational divide when it comes to funding seasonal festivities, particularly regarding the willingness to take on debt. Roughly four in ten, or 43%, of Gen Z consumers surveyed stated that they are likely to take on debt to finance their Halloween purchases this year. They are closely followed by millennials, 35% of whom reported a similar likelihood of borrowing to pay for costumes, treats, and parties.
By contrast, older generations are showing significantly more restraint and financial insulation. Only 14% of Gen Xers and a mere 2% of baby boomers indicated that they would take on debt for the holiday. This generational disparity underscores a growing financial vulnerability among younger consumers, who may have lower average savings balances, higher relative living costs, and less financial cushion to absorb unexpected price increases on everyday goods.
For those consumers who do cross the line into debt to fund their seasonal celebrations, the morning-after realization is often filled with buyer’s remorse. Among the respondents who admitted to taking on debt for Halloween, over half—51%—stated that they ultimately regretted their overspending. When asked to pinpoint the primary factors that drove them past their intended budgets, these respondents frequently pointed to two main pressures: social expectations to keep up appearances among peers and on social media, and significantly higher-than-anticipated retail prices across the board.
The sticker shock experienced by holiday shoppers is firmly rooted in broader economic data. Prices for goods leading up to the autumn and winter holiday seasons have climbed steadily over recent months, impacting even unexpected categories such as children’s toys and seasonal novelties. According to figures from the U.S. Bureau of Labor Statistics’ Consumer Price Index, toy prices alone jumped 4.2% in a single month between August and September. When viewed on an annual basis, the unadjusted figures from the index reveal that toy prices surged 6.6% compared to the same period a year prior.
These rising costs have catalyzed a strategic shift in consumer behavior. Many holiday shoppers have sought to insulate themselves from inflation by taking advantage of early-season discounts and launching their shopping campaigns weeks ahead of the traditional timeline. By spreading out their purchases and hunting for markdowns, consumers are attempting to stretch tightening household budgets as far as possible.
This cautious approach is supported by broader consumer sentiment data. Nearly half—45%—of respondents to a recent Ibotta survey reported that their current personal finances feel insecure, while more than 70% emphasized that their primary financial focus right now is actively saving money rather than spending it.
Even among consumers who report that they can comfortably afford their seasonal purchases, a profound sense of economic caution lingers beneath the surface. Data from a Deloitte survey encompassing 1,500 U.S. shoppers indicates that while roughly seven in ten individuals feel they can easily manage their Halloween spending, about 42% anticipate that the broader national economy will deteriorate further over the coming year. This underlying pessimism is fundamentally altering where consumers choose to spend their money. The Deloitte survey found that more than half of all shoppers are opting to buy their Halloween items at traditional grocery stores, while 40% are directing their shopping trips toward discount retailers to find better value.
This gravitation toward low-cost retailers is a central theme of the current retail season. A separate survey conducted by the National Retail Federation reinforces this trend, noting that nearly four in ten consumers—approximately 39%—specifically cited discount stores as their absolute top destination for procuring Halloween products, decorations, and treats. As retailers prepare for the remainder of the peak holiday shopping months, the clear preference for value, discounting, and essential-focused spending serves as a critical indicator of how American consumers are navigating an increasingly complex economic environment.