Americans Scale Back Halloween Spending Amid Economic Woes; Weather Poses New Risks

As economic uncertainty continues to impact household budgets, Americans are significantly reducing their spending on Halloween traditions this year. A new survey from LendingTree reveals that 61 percent of Americans are skipping Halloween customs due to financial pressures, with average spending projected to fall to $162 from $192 in the previous year.

The financial strain is evident as only 80 percent of consumers plan to make a Halloween-related purchase, a decrease from 90 percent last year. Candy remains the most popular item, with 48 percent of buyers planning to purchase it. Costumes for individuals and outdoor decorations each account for 21 percent of planned purchases, followed by children's costumes at 20 percent.

Beyond the cutbacks in spending, homeowners are being alerted to potential liabilities arising from their Halloween decorations, particularly in light of a strong El Niño pattern predicted for the fall and winter. A report from Realtor.com warns that this pattern could bring wetter-than-average conditions to parts of the Gulf Coast and Southeast, potentially exacerbating risks associated with outdoor displays.

Experts caution that high winds could transform unsecured inflatable decorations like ghosts and skeletons into dangerous projectiles. Heavy rainfall poses a risk to outdoor electrical equipment and extension cords, creating hazardous conditions. Amanda Demanda, founder of The Law Offices of Amanda Demanda, highlighted the legal exposure homeowners could face if their decorations cause injuries.

"If you leave Halloween decor up in your yard after the holiday or you face a nasty, wet front with high winds before it, the exposure you have is very real," Demanda told Realtor.com. She noted that the dangers are particularly concerning for children trick-or-treating after dark, older neighbors, and delivery drivers who may navigate decorated yards and walkways.

Juan Dominguez, founder, CEO and managing partner of The Dominguez Firm, added that a combination of rain, fallen leaves, and electrical cords could contribute to slip-and-fall accidents, especially when children's visibility is limited by costumes and masks.

Homeowners could face significant claims if injuries occur and they are found legally responsible. While homeowners insurance may offer some coverage, policy limits and specific circumstances will determine the extent of protection. Demanda advises homeowners to review their current insurance policies and consider an umbrella policy for additional liability protection.

To mitigate these risks, Demanda recommends firmly anchoring inflatables, bringing them indoors during high winds, keeping walkways clear of cords and obstructions, and using outdoor-rated electrical equipment. She also suggests switching off electrical decorations during heavy rain and documenting displays with photographs.

"Since it may be less obvious to you because you see it every day, walk through your yard the way a visitor would, especially a young trick-or-treater at night, and fix anything that concerns you," Demanda advised.

These warnings come as the financial impact on Halloween spending is already being felt. The LendingTree survey of 2,000 Americans found that 35 percent have gone into debt to pay for the holiday, with nearly 24 percent expecting to do so this year.

Despite the overall trend of reduced spending, some demographics anticipate spending more, including six-figure earners ($311), parents of young children ($269), and millennials ($225). Matt Schulz, LendingTree's chief consumer finance analyst, noted that the figures underscore how financial worries are affecting even smaller celebrations, with money concerns diminishing the holiday's traditional sense of fun.