When writing a story where the characters are talking, is it a new paragraph each time a different character speaks?

Specifically the following:
Paragraph describes the kids in the story and talks about them trick or treating and that they are now heading home. Should the next sentence On the way, Griffen stop and shouts "Guys look at this!" be a new paragraph?

The first dialogue can be in the paragraph it is coming from, but when the kid responds, it should start a new paragraph every time.

Yes, a new paragraph each time a different character speaks.

When writing a story where characters are talking, it is generally recommended to start a new paragraph each time a different character speaks. This helps to clearly indicate changes in speakers and makes the dialogue easier for readers to follow.

In your specific scenario, since the paragraph before the dialogue describes the kids in the story and their activities, it would be appropriate to start a new paragraph when Griffen speaks. This way, the readers can easily identify that Griffen is the one speaking and that his words are separate from the previous description.

Here's an example of how you can structure it:

Paragraph:
"The kids had a great time trick or treating, excitedly knocking on doors and collecting candies. Now, as they were heading home, their bags filled with treats, a sense of adventure lingered in the air. On the way, Griffen stopped suddenly and shouted, 'Guys, look at this!'"

Starting a new paragraph for Griffen's speech helps to create a visual break and enhances the readability of your story.