8 Money Traps That Come Around Every October
It’s a new month and, with the turn from summer to fall and the holidays just around the corner, things are once again changing. While change can be great fun, there are certain money traps that come around every October that you need to be aware of. After all, they can impact your spending and savings quite a bit if you’re not prepared.
Costco Will Give You Free Groceries in Exchange for Old Electronics; Here’s How To Take Advantage
Find Out: How To Get Cash Back on Your Everyday Purchases
Stores are switching out their selection and availability of certain seasonal goods. The price of some items is going up, while others are dropping as they’re no longer as highly demanded. And still, your own holiday shopping is bound to put a dent in your budget.
As you prepare for the new month and the holiday season ahead, here are some of the biggest October money traps to keep an eye on.
Halloween Candy, Costumes and Decorations
Unsurprisingly, one of the biggest October money traps is Halloween and all things related to the holiday. Even if you don’t celebrate the holiday yourself, you might still end up spending extra money on things like candy or even decorations.
“There are several specific money traps that pop up every October, but some of the biggest culprits are related to Halloween, like costumes, decorations and candy,” said Scott Lieberman, founder of Touchdown Money. “People end up spending more money on Halloween-related items — including costumes and candy! — because it’s a once-a-year holiday and, if you’re a person that interacts at all with family or friends, it’s easy to get enticed into the holiday spirit — or just tempted by delicious candy. Unfortunately, Halloween-related items can be expensive and, when it comes to candy, sometimes more expensive due to the holiday than it would be at other times of the year.”
Dr. Kate Mielitz, accredited financial counselor and AFC program manager at Beyond Finance, added, “We often feel obligated to buy candy for the trick-or-treaters, costumes for the kids (or yourself), decorations for the house, and more candy because you ate or ‘misplaced’ the other candy already purchased.”
According to the National Retail Federation, here’s what they expect people to spend their money on this year in relation to Halloween:
$12.2 billion on Halloween itself
$3.6 billion on Halloween candy
$4.1 billion on Halloween costumes
$3.9 billion on Halloween decorations
I Grew Up Poor: Here Are 8 Things I Never Waste Money On
Holiday Deals
Halloween is just the start of the holiday season. Many stores have already started preparing their shelves for Thanksgiving and other upcoming holidays so people can buy things ahead of time. Some of these items are more expensive than they’d be at other times of the year. Even those that aren’t can entice people to buy things they might not normally.
“Early holiday deals encourage shoppers to start their December shopping earlier each year,” Joseph Camberato, CEO at National Business Capital, said. “This is definitely a tactic used to boost sales. And, of course, there’s the annual surge in demand for anything pumpkin-spiced now.”
Natalie Graham, founder of Go From Broke, added, “The ‘shop early’ holiday buzz starts in October. I’ve already seen some ads for Amazon’s latest Prime Days sale coming up. It’s easy for people to get carried away when they see sales and end up spending more than they planned.”
“Sales events like [Prime Day and Black Friday] create a sense of urgency and cause people to buy things they would likely not have if there wasn’t so much hype around the sale,” said Andrea Woroch, consumer and money saving expert. “Before buying anything, check the price using CamelCamelCamel.com, as this will give you historical pricing data that can show you if the Amazon deal is worth it or if it will likely go on sale closer to Black Friday. This can help you avoid misleading offers such as inflated prices to make a deal look like a better value.”
Travel
October is also the time when people who haven’t yet finalized their travel plans for the holidays do so.
“In addition to candy, costumes and Halloween decorations, people are considering plans for Thanksgiving and the winter holidays,” said Mielitz. “October is [a] prime time for purchasing airline tickets, securing hotel rooms and reserving a rental vehicle for those holiday adventures.”
Pumpkin-Themed Everything
If you’ve ever been to a cafe around October, you’ve probably seen the pumpkin spice lattes. But those aren’t the only pumpkin-related thing that’s a hit around this time of year.
“Pumpkin-flavored treats and drinks get people excited for fall. This exclusive flavor is only available in fall and is now associated with a cozy autumn vibe that leads people to spend more for that feeling. Plus, it feels fleeting since fall doesn’t last that long,” said Woroch. “On a recent trip to Trader Joes, I saw many pumpkin-flavored foods, like pumpkin granola bars, pumpkin flavored cookies, pumpkin ravioli… the list goes on and on.”
Indulging a little isn’t a problem, but it’s easy to overspend on pumpkin-related goods right now.
“It may seem cliché at this point, but pumpkin spice is everywhere, and the people who love it may let their excitement get away from them,” said Graham. “From lattes to candles to dog treats… it’s not the worst indulgence, but it can be easy to overdo it. Those little splurges can add up quick.”
Utilities
As the temperature gets colder, many people start running their heaters more, which can lead to higher energy bills.
“There’s increased expenses on heating as cooler weather sets in, and with that, related repairs and maintenance costs,” said Camberato.
Clothing
“People often buy winter clothes before the colder months, taking advantage of slightly lower prices compared to December or January,” said Camberato.
On the other hand, it’s also easy to overspend on clothing at this time of year.
“Transitioning from shorts and t-shirts to sweaters and boots can prompt people to spend more to refresh their wardrobes,” said Graham.
New Tech
Not only is October the perfect time to get any holiday shopping done, but it’s also when tech businesses start releasing new products — the perfect, albeit potentially expensive, gift.
“New tech releases often happen around October,” said Graham. “From the new iPhone and Google Pixel to the latest Apple Watch or Meta’s new Quest 3, all these gadgets can lead to increased spending.”
October Events
Last but not least, there are certain October-specific events and activities that really don’t occur at any other time of the year. This includes apple bobbing events, corn mazes and pumpkin patches.
“In 2020, Americans spent about $687 million on pumpkins. Going to a pumpkin patch is a fun family activity, but get ready to dish out a lot for admission, as well as on pumpkins — if they’re not part of the admission — extra activities like a petting zoo or hay ride or face painting, and drinks or treats,” said Woroch. “The Halloween-themed events are never-ending, and you can overbook your calendar and spend a lot to attend these various activities.”
Ways To Save This October
Looking for ways to save some money this October? Here are just a few:
Use coupons and cash back. “Luckily, many retailers, like Halloween Express, HalloweenCostumes.com and even Target, have discounted sections or coupons that you can use to bring down your overall spending total,” said Lieberman. “You can also install a cash-back app like Rakuten to save even more.”
Get used costumes or recycle yours from last year. “If you’re looking to save money in October, consider recycling costumes,” said Mielitz. “Often, we buy costumes because it’s convenient. However, reusing costumes is a great way to reduce overall spending this month, whether trading with friends, finding a deal on something used or getting creative with materials you already have at home.”
Buy candy in bulk. “Buy candy in bulk/on sale,” said Kendall Meade, CFP at SoFi. “This year, I bought the Halloween candy I plan to hand out from Sam’s Club, and it was on sale the week I bought it.” If you want to save even more on candy, don’t get full-sized candy bars.
Recycle decorations. “Last year was mine and my husband’s first year as a married couple, so we splurged and bought lots of fall decorations,” said Meade. “Now, we have everything we need, so we did not purchase any this year. Skip the real pumpkins and hay bales that you must buy every year and get the reusable décor!”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 8 Money Traps That Come Around Every October
