The Economics and Psychonomics of Halloween
Last night we got to experience Halloween in a new way. As a stand-in parent for our neighbor’s boy. So we did the march around the neighborhood with the rest of the adults shepherding kids on the trick or treating mission. As we wandered around I couldn’t help but 
think about the economics and psychonomics (I think I made that word up — but I mean mindset) of this consumer made holiday.
From what I can tell, the Great Pumpkin is running neck and neck with Santa Claus when it comes to the most expensive holiday of the year. It’s not just the U.S. that has experienced this boon, according to this article which puts the Canadian spin on things:
The Retail Council of Canada estimates that Canadians spend $1.15 billion on candy, pumpkins, costumes and decorations as they mark the scariest night of the year, which this year amounts to about $59 each, down from $60 in 2006.
Of course in the US, land of the consumer, we go one better as we tally up the spooky cost of Halloween
According to the National Retail Foundation, Americans are expected to fork out more than $5 billion this Halloween season.
From what I saw last night, this doesn’t surprise me one bit. Halloween used to be a few bags of candy and a costume. Now it is a huge industry of decorations, lights, and large blow-up things that makes the neighborhood look like an orange and black version of Christmas.
Now I’m all for having fun, but it seems to me that all this time and effort spent on costumes and wandering from house to house doesn’t get the ROE (return on effort) one would hope for. After all, your kid could score far more chocolate from one trip to Costco and a supersize bag than a whole night of walking door to door. So, what’s the mystique?
I’m not really sure, other than tradition and needing to do what everyone else is doing. For the people I saw that were truly having fun enjoying their little ones in creative costumes, I get the whole appeal. For so many others,though it seemed like yet another dreaded moment to complete an obligation and get through the holiday. That’s where the mindset comes in.
While I amused myself thinking of the term Psychonomics as we wandered the streets, I was amazed at just how rich the insights could be if you just took a look around at how people were acting and what they were saying. I wrote about my observations on The Mindset of Halloween on my blog today. The part that most applies to money, though is the mindset of scarcity. I’ve written about it before and I’m sure I’ll do so again, but last night was like watching scarcity and desperate consumption on a movie screen and it was scary…
I couldn’t find a better example of scarcity mindset and the unrelenting drive for more more more than Halloween (well, maybe Christmas). Here you’ve got kids, many of them older kids schlepping from house to house begging for candy. No longer is one treat sufficient. Oh no. Now it is two, three, or a handful. And, they walk around with multiple bags filled so full that they drag on the ground like a thin plastic grocery bag filled with several gallons of milk. Still…. they want more. Scurrying faster toward houses with lights and then complaining loudly about houses without candy or lights saying “another Dud that sucks.”
And, it is not just the kids anymore. The adults are into the act too with one trying to outdo the other when it comes to Halloween decorations and “Haunted Yards”. Now don’t get me wrong…this can be a lot of fun. I went to more than my share of horror halls and funky displays in my time. Yet, I wonder – how many of these displays are created out of pure joy and how many are done out of a chance to show off, spend money, or just look good? I’m not sure…only each person really knows. What I would love is a Suze Orman moment with these folks though to ask them if they have any credit card debt or if they are funding their haunted front yard cemeteries with borrowed money and compounded interest. Now THAT would be spooky…
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Paula Gregorowicz is the Comfortable in Your Own Skin(tm) Coach and you can learn more at her website www.thepaulagcompany.com and blog www.coaching4lesbians.com .
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One of the best things about the observant Jewish community is the replacement of Halloween by the festival of Purim, sometime in the early spring. The local kids go from door to door in costume giving gift packs of food to the residents. The competition, if any, is in the food given away – who makes the best theme packs or the most unusual kosher item. Each pack is small in size, but some families only give away a few (1 gift of 2 foods is all that is required by the law) and others give to everyone. The local synagogues all sponsor a group pack that gets sent to every member so that no one is left out.
We saw some fantastic houses last night, but I didn’t have your Suze Orman moment. Good question, though.
Since I’m not a parent, I enjoy walking through neighborhoods and seeing the kids in costume. We can’t give out candy because our building is locked, so all the apartment kids go to the neighborhood.
Paula, I don’t get it either. I hated Halloween as a kid, and to this day I try to ignore it so that my head does not explode with rage. I’m glad it’s over, and each year I hope and pray the stupid day will be wiped off the calendar, or that the Grinch will come to his senses and realize he should be stealing Halloween. I honestly don’t know what people are spending their money on.
Costumes are more often bought now than they used to be. I NEVER had a bought costume as a kid- it was up to my resources and creativity if I wanted a good costume. Otherwise, mom would hand me the rain slicker and a fishing rod and say I was a fisherman this year! Bleh.
I am fortunate that my uncle in law (my mother in law’s brother) is an upholsterer/decorator and brings me and my M-I-L carloads of fabric. I use this as my main costume resource for the kidlets- but sometimes I do stray and spend A LITTLE. Like this year, I bought our 5 year old a Harry Potter broomstick for playing and for his costume. This has seen more play than most things in his room over the past month– he likes to go outside in the back yard and fly around (really run around with his broom- a good energy outlet for him!) We have zero trick or treaters come to our home since we are the only door on the block- plus no sidewalks. We only go to a few homes of family and friends- that’s enough. My eldest daughter went trick or treating this year with her Brownie troop and came home with 3 times the candy my other kids collected. I told her she would be paring down what she could keep and that the rest would go to our church food pantry- though on some level I feel guilty about pawning off junkfood on those who need real food (but on another level- who doesn’t NEED chocolate once in a while?!?)
I would never do a big outdoor display or decorate to the hilt like some do. I DO have a big ole Rubbermaid tote full of decorations for Halloween– but these are the same every year- and they are all for my kids to see and get excited about Halloween.
I do love Halloween, but I agree about the overboard “outdoing the Joneses” competition of suburbia. We don’t play that. We just enjoy one day of being whomever or however we want to be in a fab homemade costume with a few pieces of candy from trick or treating. Oh– and our local (Syracuse) Sage group puts on the best dance of the year for Halloween– my one big, guaranteed date night out with hubby- and its always great!
I agree with John… I just don’t get all the fuss. I wasn’t allowed to celebrate in the typical traditions as a kid and even as an adult, it all seems like a weird, dark thing to spend money on. We buy two and carve two pumpkins and that’s about it. Perhaps I’ll feel differently when we have kids.