Thrifty Thinking: Halloween Spending & Financial Fears Survey

 

With Halloween just days away and consumers expected to spend roughly $10 billion on the occasion, the personal-finance website WalletHub today announced the results of its nationally representative Halloween Spending & Financial Fears Survey, along with its picks for 2021’s Worst Credit Cards to highlight scary offers that people should avoid this holiday season.

Please find key takeaways below, followed by commentary from WalletHub experts (audio and video files included).

• Scary Debt: 43% of Americans are more afraid of credit card debt than covid.
   
• Spooky Variants: 71% of Americans are afraid of new covid strains hurting the economy.
   
• Horrific Finances: Almost a third of Americans think their finances are a horror show.
   
• Less Fear About Kids’ Finances: 12 million fewer people are scared about their kids' financial futures this year than last year.
   
• Scariest Part of Halloween 2021: 61% more Americans think spending money is the scariest thing about Halloween this year compared to last year.

 
Q&A with WalletHub

Why are Americans more afraid of credit card debt than the coronavirus?

“Roughly 43% of Americans are more afraid of credit card debt than covid this Halloween, according to a new WalletHub survey, because credit card debt levels are rising again while the threat posed by covid has fallen among the vaccinated. There is no vaccine for credit card debt, and it’s likely to stick around longer than a covid case,” said Jill Gonzalez, WalletHub analyst. “Besides, money has been the country’s top stressor for a long time, even above health, so a greater concern about credit card debt than covid is to be expected from a significant percentage of people.”

Why are so many Americans afraid of new covid strains hurting the economy?

“More than 7 in 10 Americans are afraid of new covid strains hurting the economy because we’ve seen it happen before. The economy was rocked by the first wave of covid, and the variants that have emerged since then have fueled concerns of future shutdowns,” said Jill Gonzalez, WalletHub analyst. “Many people and businesses have barely scraped by so far, and a significant turn for the worse on the covid front would signal even harder times to come.”

Why do so many Americans think their finances are a “horror show”?

“Almost a third of Americans think their finances are a horror show, according to a new WalletHub survey, and that is not a new development brought on by the pandemic. Roughly the same number of people thought their finances were a horror show in 2019, which indicates that our main problem is a fundamental lack of financial literacy rather than current events," said Jill Gonzalez, WalletHub analyst. "A lot of people have never received good instruction on how to manage their finances, so it's inevitable that some of the results can be categorized as horrific.“

Why are less people scared about their kids’ financial future this year compared to last year?

“Around 12 million fewer people are scared about their kids' financial futures this year than last year, largely because kids have returned to school and vaccines are proving effective,” said Jill Gonzalez, WalletHub analyst. “We can see the light at the end of the tunnel and a bright future for our kids now, which wasn’t the case for nearly as many parents last Halloween.”

Why do most Americans think spending money is the scariest thing about Halloween this year?

“Compared to last year, 61% more Americans now think spending money is the scariest thing about Halloween, largely because health concerns have subsided and we’re out of practice after spending less than usual on Halloween last year,” said Jill Gonzalez, WalletHub analyst. “Credit card debt and inflation are on the rise, too, which is enough to spook many spenders.”

What’s the best way to avoid the worst credit cards? 

“The best way to avoid the worst credit cards is to compare offers based on the features that will affect you the most. For example, if you’re going to pay your bill in full every month, a card’s interest rate won’t matter and you should focus on finding the best rewards for your spending habits,” said Jill Gonzalez, WalletHub analyst. “Considering what each card offers in the context of your own finances and putting everything in dollar terms will make it clear which card to pick.”