Economy 4 min read By Alice Ashford
Americans set to spend record $13.5 billion on Halloween as one in four expect debt
The National Retail Federation forecasts record US Halloween spending this year, even as a LendingTree survey finds nearly a quarter of celebrants expect to borrow to pay for it and many are cutting back.
American households are expected to spend a record $13.5 billion on Halloween this year, according to the National Retail Federation, up from $13.1 billion a year earlier. Yet economic pressure is shaping how that money is spent, and a survey by LendingTree suggests nearly one in four celebrants expects to go into debt to cover the holiday.
The LendingTree survey of 2,000 US adults found that 61 per cent are skipping candy, costumes or decorations because of economic uncertainty. Gen Z is the group most likely to expect to borrow for Halloween, at 43 per cent, followed by parents of children under 18 at 40 per cent and millennials at 35 per cent.
Neil Saunders, managing director and retail analyst at GlobalData, said rising petrol and food prices and general uncertainty were pushing consumers to make the most of the occasion. « There’s definitely a prioritisation of spending for these little indulgent moments », he said. He described a pattern in which shoppers cut back on « more disposable » items such as skulls and pumpkin decorations while still spending on purchases with greater emotional value, such as children’s costumes. « It’s really important to make the kids feel good, so that’s an area where consumers will often splash out a bit », he said.
Parents are among the heaviest spenders. Those with children under 18 expect to spend an average of $269 on Halloween this year, compared with an average of $162 across all groups, according to LendingTree. Some 58 per cent of parents expect to spend more than last year, against 52 per cent of Gen Z and 49 per cent of millennials. LendingTree also found that 43 per cent of respondents said social media had led them to spend more on Halloween than they otherwise would, including nearly three in four Gen Z respondents.
Borrowing is most common among younger adults. According to LendingTree, 43 per cent of Gen Z and 35 per cent of millennials expect to borrow for Halloween, compared with 14 per cent of Gen X and 2 per cent of baby boomers. Among those who have previously gone into debt for the holiday, 51 per cent said they regretted overspending, citing pressure to keep up with others and prices higher than they had expected.
The record headline figure does not mean the average person is spending more. The NRF expects consumers to spend $115.14 per person, up just 69 cents on last year. LendingTree’s survey found Halloween shoppers expect to spend an average of $162 each, down 16 per cent from $192 a year ago. Most respondents are trying to limit costs, with 85 per cent taking at least one step to save money, including buying fewer items and setting spending limits.
Shoppers are also starting earlier. According to the NRF, 49 per cent of consumers began Halloween shopping in September or earlier, compared with 34 per cent a decade ago. Discount stores are the most popular destination, with 39 per cent of shoppers planning to visit, followed by specialty retailers such as Spirit Halloween. Allison Zeller, the NRF’s vice president of industry and consumer insights, said: « Consumers continue to make Halloween a spending priority, but they are also approaching the season with affordability in mind ».
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