Spooky Splurge: Scared of Prices, Not of Spending

Despite inflation and soaring gas prices, Americans are expected to spend a whopping $13.5 billion on Halloween this year, up almost half a billion from last year, according to the National Retail Federation’s survey.

Floridians are no exception—splashing out on costumes, decorations, party supplies and, of course, candy. While some Floridians are finding ways to celebrate Halloween on a budget, others are willing to spend thousands to make the holiday memorable.

For Coral Springs resident Kim Reyes that means hosting a Halloween party that will cost her approximately $5,000 for decorations, food, drinks, a DJ, and other expenses.

Why splash out amid all the economic jitters? For Reyes, a 46-year-old nurse practitioner and mother of two children, aged 16 and 18, the celebration is about much more than costumes and decorations.

"My husband passed away, and he absolutely loved throwing parties and bringing people together," Reyes said. "Life has taught me how precious time is, and I want to celebrate life, make memories, and enjoy good times with the people I love."

Reyes added that because she planned well in advance for the expense, she hasn't had to cut back significantly on other purchases to afford it.

But even those who are feeling pinched financially are spending on Halloween—a behavior known as the “lipstick effect,” according to Emily Webster, an assistant professor of marketing at Palm Beach Atlantic University.

The term refers to consumers’ tendency to continue purchasing small luxuries during financially stressful times.

"They're still looking for that emotional rewarding experience or indulgence, and I think Halloween is exactly that," Webster said, adding that consumers may be willing to cut back on larger purchases while continuing to spend on smaller indulgences.

Rather than spending hundreds of dollars at once, consumers also may make several smaller purchases throughout the season, from candy to costumes to decorations.

"People are more willing to spend $12 multiple times, but they're less likely to spend $900 at once on Halloween. So it kind of adds up in the long run, but they don't really notice it until the end, until it's over," Webster said.

Emotional satisfaction isn’t the only thing influencing people to celebrate Halloween. Social media plays a large role. According to Webster, social media has changed how consumers approach Halloween, encouraging elaborate costumes, decorations, and celebrations that extend beyond a single night.

"TikTok and Instagram has really normalized this overconsumption, especially around the holidays," Webster said.

Webster also explained that social media can encourage consumers to buy new costumes each year rather than reuse old ones, especially when they have already shared photos of previous costumes online.

Social media seems to hit college students especially hard.

For Natalie Keller, 21, a health and exercise science student at Florida Atlantic University, social media influences how she approaches Halloween, particularly when choosing costumes.

“I see a lot of people who go out multiple times wearing different crazy costumes and it makes you want to go the extra mile,” she said.

She explains that instead of wearing animal ears and a shirt, for example, social media normalizes and “makes you want to buy a full-out costume and get creative with different kinds of costumes.”

Keller tries to shop early and reuse decorations to keep costs down. But, this year, Keller plans to wear two costumes, spending approximately $100 on each. And with an October birthday adding to the festivities, Keller said Halloween celebrations often extend beyond just one night. Going out with friends also adds to the cost.

Nonetheless, she said, “everything about Halloween makes it worth it to me,” she said. “It’s the best time.”  

Besides, Keller added, it only comes once a year. “So it's good to make the best of it,” she said.

And for many, whether spending $200 on costumes or $5,000 on a party, the memories made during the spooky season last far beyond Halloween night.

"Bringing friends and family together, laughing, and creating memories is worth every penny," Reyes said.