One in Five Americans Would Go Into Debt for Halloween

Halloween is a serious business, with spending levels set to reach record highs in 2023.

Experts have projected Americans to spend roughly $12.2 billion on the holiday this year, swelling 13 percent from last year, according to the National Retail Federation.

The average spending per household is also estimated to hit a record high of $108, up from around $100 in 2022.

As inflation keeps the costs of costumes, decorations and even candy at higher amounts than previously seen, a growing number of Americans are willing to go into debt to pay for the spooky season done right.

Nearly one in five Americans say Halloween is worth going into debt for, according to the Halloween Spending & Financial Fears Survey from WalletHub.

Parents with children under 18 are much more likely to splurge on the holiday, with 60 percent planning to do so, the report found.

"Debt and Halloween seem to have this strange bond," Cassandra Happe, WalletHub analyst, told Newsweek. "Many have fallen into debt just for the spooky day and plan to do the same this year. Many parents with kids under 18 are pressured to deliver the best costumes, the most candies, and the spookiest decorations, leading to intense situations."

"It's easy to get carried away when you want to ensure the little ones have a blast. So it's not shocking that some are willing to take on debt to create unforgettable memories and make Halloween special for the kids."

Still, this news arrives as the vast majority of Americans (77 percent) plan to lighten their spending on Halloween this year.

"The real test will be the other holidays between Halloween and New Year's Day, as that's when we traditionally rack up the most debt. Right now, debt levels are reasonable, but we may be singing a different tune come 2024," Happe said.

Financial worries are an increasing concern for Americans, of which 47 percent said they have nightmares about money problems. The fears over money are especially concentrated among the young, with 70 percent more of those between ages 18 and 29 saying they have money nightmares compared to Americans ages 60 and older.

"People's biggest financial fears are not having enough money for retirement and unplanned emergency expenses, garnering a total of 54 percent of the vote in a new WalletHub survey," Happe said.

"Considering how little most people have saved, how much debt we owe and the extent to which inflation has made both factors worse, it makes sense that not having the cash to make ends meet is keeping people up at night."

Americans are also dealing with concerns over the long-term viability of Social Security, which is predicted to run out by 2034.

Gen Z and millennials are seeing some of the greatest financial stresses, as more than a quarter say student loan repayments will make the holidays unaffordable this year, according to a new study from Intuit Credit Karma.

Today's high cost of living has nearly a quarter of Americans (24 percent) wishing the holidays were canceled this year, and 28 percent of Gen Z and millennials point to student loan repayments as the primary factor for their inability to afford the holidays this year, reported the survey, which spanned responses from 1,000 adults.

"It's not surprising that a quarter of Americans say they expect to spend more this holiday season compared to the last, with inflation being one of the top reasons people expect to spend more," Courtney Alev, consumer financial advocate at Credit Karma, told Newsweek.

Moving ahead into Thanksgiving and Christmas, 66 percent of younger Americans said they plan to take on debt to cover costs, including gifts, traveling home for the holidays, vacations and even necessities, like groceries for holiday meals.

"No matter how financially stressful the holidays may be for some people, many feel pressure to celebrate with their family and friends, which often comes at a cost. Spending more money and taking on debt to afford the holidays stems from consumers feeling the need to treat those who they love," Alev said.

Roughly 42 percent said they feel the need to splurge on the holidays to treat those they love, according to the report.