Money Matters - Halloween Spending & Financial Fears Survey

 With Halloween just days away and consumers expected to spend roughly $12.2 billion on the occasion, the personal-finance website WalletHub today announced the results of its nationally representative Halloween Spending & Financial Fears Survey. WalletHub also announced its picks for 2023’s Worst Credit Cards to highlight scary offers that people should avoid, along with money-saving alternatives.

Key findings from the reports are below, along with tips for avoiding bad credit card outcomes.

• Inflation Still Haunts Us: 34% of people think inflation is the scariest thing about Halloween this year.
   
• Financial Nightmares Are Common: 47% of Americans say they have nightmares about money problems.
   
• Money Fears Grip the Youth: 70% more Americans between the ages of 18 and 29 say they have nightmares about money problems, compared to Americans who are 60+ years old.
   
• Spooky Priorities: Nearly 1 in 5 Americans say Halloween is worth going into debt for.
   
• Halloween Spending Decline: 77% of people say they plan to spend less on Halloween this year than last year.
   
• Biggest Financial Fear: 27% of Americans say not having enough retirement savings is their biggest financial fear, and another 27% of Americans say it's an unplanned emergency.

• Tricky Reputation for Credit Cards: More than 2 in 3 people think credit cards are a trick rather than a treat.

Full survey: 2023 Halloween Spending & Financial Fears Survey
 

Q&A with WalletHub & Tips

What are consumers scared of this Halloween?

“You might guess that gory costumes and horror movies top the list of things people are afraid of this Halloween, but 34% of people actually say inflation scares them the most, according to a new WalletHub survey. Movies (13% of the votes) and costumes (7%) don’t even combine to instill as much fear as inflation,” said Cassandra Happe, WalletHub analyst. “Perhaps the scariest thing about inflation compared to traditional sources of Halloween fright is the fact that it won’t just go back to normal in a day. Our current issues with inflation clearly aren’t transient.”

Will Halloween spending lead to a lot more credit card debt?

“Although nearly 1 in 5 Americans think Halloween is worth going into debt for, according to a new WalletHub survey, this particular holiday is unlikely to push credit card balances too high. Beaten down by inflation and record-high interest rates, 77% of people say they plan to spend less on Halloween this year than they did last year,” said Cassandra Happe, WalletHub analyst. “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.”

How common are financial nightmares?

“Unfortunately, 47% of Americans say they have nightmares about money problems, according to a new survey by the personal-finance website WalletHub, and the phenomenon is most common among young people. Americans 18 to 29 years old are 70% more likely to have nightmares about money than those who are 60+ years old,” said Cassandra Happe, WalletHub analyst. “The best recipe for financial peace of mind when you’re trying to rest and recharge is to make a plan for the future before you lay your head down to sleep. Even just getting your WalletScore and seeing what you need to do to improve it will go a long way.”

What are people’s biggest financial fears?

“People’s biggest financial fears are not having enough money for retirement and unplanned emergency expenses, garnering a total of 54% of the vote in a new WalletHub survey. 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. Add concerns about the long-term viability of Social Security to the mix, and it’s clear why some people are reaching for the melatonin,” said Cassandra Happe, WalletHub analyst.

Tips for Good Credit Card Outcomes

1. Don’t Write Off Credit Cards Entirely – More than 2 in 3 people think credit cards are a trick rather than a treat, according to a new WalletHub survey, but failing to have a credit card would be the real trick. Simply owning a credit card can help you build credit, even if you don’t make purchases, and the right credit card could save you hundreds of dollars per year with rewards or a 0% interest rate.
    
2. Compare Offers Before You Apply – Without context, even some of the worst credit cards can seem pretty good. By checking to see what else is out there, you can make sure you’re not missing out on better deals. 
    
3. Don’t Mix Debt With Everyday Purchases – If you make purchases with the same card you’re using to carry a balance from month to month, those purchases will accrue interest right along with your revolving balance. But if you use a separate card for everyday purchases that you can afford to pay off by the due date each month, you won’t have to pay interest on those purchases. 
    
4. Watch Out for Deferred Interest – This financing arrangement gives you a low introductory APR but threatens to retroactively charge interest at a high rate if you don’t pay off the full balance by the end of the intro period. This can lead to very expensive interest charges when you’re not expecting any.