Halloween doesn't need to break the bank, but a spot of frugal fear-mongering doesn't mean skimping on the basics, either. Here's how to enjoy a frightfully fantastic spooky season without risking bankruptcy.

It's scarily easy to spend huge amounts on Halloween – now more than ever, thanks partly to the wide range of Halloween-themed items for sale, whether it's ghoulish garden decorations, elaborate costumes or trick-or-treating accessories. Setting fixed budgets to cover costumes, food and decorations before you even step foot in a shop will help you resist the urge to buy extra items you can't afford – and probably don't even need.

Saving money on Halloween costumes doesn't have to mean squeezing your offspring into the same outfit they've been wearing for the past 10 years. Encourage children to exchange outfits with friends at school, or ask your neighbours or relatives if they fancy swapping their children's Halloween costumes. 

These days, all of the big confectionary brands offer Halloween-themed versions of their best-selling sweets – often at vastly inflated prices, despite the fact the contents are often exactly the same. Slash the cost of Halloween by making your own goodies for trick-or-treaters. Rice crispy cakes drizzled with raspberry sauce look scarily similar to brains, while fragments of pretzels can be used to turn miniature doughnuts into spiders.

Halloween is big business – shops are packed to the rafters with Halloween-themed merchandise in the run-up to the spookiest day of the year. The bad news (for shopkeepers) is that the chance of being left with mountains of surplus stock is even higher, which is why prices are often slashed the day before Halloween. For this reason, consider purchasing pumpkins and decorations the day before, or even on the morning of Halloween.

If you're surrounded by families, there's a good chance, come 31st October, that your street will have enough Halloween decorations to make it visible from outer space. This, in turn, will make it a popular trick-or-treating destination, but you shouldn't feel obliged to spend a small fortune on treats. Don't be afraid to stick a polite notice to the door informing people that you've run out of sweets – you can even think of this as a good deed, minimising the risk of sweet-induced tooth decay.

Think ahead, and consider growing your own pumpkins next year. Boost the fun factor by getting together with other families to see who can grow the biggest pumpkin, before holding a competition to see who can carve the best design.

By the time Halloween's done and dusted you'll probably never want to see another pumpkin again. Ever. But a post-Halloween shopping spree will allow you to pick up items for next year at vastly reduced prices. Halloween decorations will never go out of date, and the long expiry dates on sweets means you can stockpile edible goods, too. 

Buying flimsy, disposable Halloween decorations is a false economy – it's a yearly event, after all. Avoid one-use items like stick-on window decorations or paper garlands and stick to items which you'll be able to use year after year. You'll be able to pick up cheap Halloween fairy light sets from most supermarkets, and plastic decorations, such as pumpkins, themed beakers and pretend creepy crawlies can all be purchased for just a few pounds.

Sure, those LED plastic pumpkin lights look pretty cool, but you'll appreciate your Halloween decorations much more if you made them yourself. Stock up on supplies from stores like Hobbycraft and turn your home's Halloween makeover into a family affair. You can make further savings by making banners and other decorations by printing off images you've downloaded from the internet.

We've all seen those huge tubs of sweets, but we often opt for more expensive, smaller selection boxes, purchasing only what we need for this year – big mistake. Halloween is big business, and shops have cottoned on to this by selling containers of sweets big enough to feed an entire army. Don't be afraid to buy in bulk – it's almost guaranteed that the sweets will have an expiry date several years in the future, and you'll also reduce the chances of running out of treats on the big night.

In recent years, our approach to pumpkin purchasing has been influenced by trends across the pond - more specifically, the popularity of pumpkin patches. While we're all for the pick-your-own approach when it comes to strawberries, pumpkins are a different story altogether – do you really want to spend a cold October morning searching for the perfect (overpriced) pumpkin? Our advice? Let the farmers do the hard work and save serious amounts of cash and buy a pumpkin from the local supermarket.

Does little Johnny really need that all-singing, all-dancing, light-up Darth Vader mask? Probably not. Halloween masks are no longer cheap bits of moulded plastic, something reflected in the price tag. This year, use make up to transform your little darlings, instead. Eye make up (although probably not mummy's new £20 Chanel eye liner) can be used to draw moustaches and scars, while cheap, spray-in hair colour makes a great, cheap alternative to wigs.

Kids might well think sweets are the be all and end all, why not think outside the box this year? The fact that sweets come as standard means alternative goodies will be welcomed with open arms. Craft stores are great places to bulk buy cheap toys such as pocket money, toys and novelty erasers. Rolls of stickers and coloured pencils are great options for trick-or-treaters, too.

The average second hand shop is a treasure trove when it comes to Halloween costumes, whether it's funny hats, outlandish accessories or simply the opportunity to pick up some cheap items of clothing which you can shred, dye or splatter with fake blood. This is another situation where it's worth planning ahead, too – second hand shops are often full of unwanted costumes in the weeks following Halloween.

In the same way your neighbour's pre-loved Halloween costume might enjoy a new lease of life with your own children, why not consider swapping last year's decorations with friends and family? For some people, displaying the same Halloween decorations year after year is a major faux pas, so who knows what unwanted, terrifying treasures your neighbours have lurking in their garden sheds?

Pound stores are fantastic places to bulk buy goodies for trick-or-treaters, and they're also brilliant options when it comes to stocking up on materials you'll need to make your own decorations, whether it's blood-red food dye, cookie cutters or that all-important plastic gravestone for the front lawn.

There's never been a bigger appetite (excuse the pun) for ghoulish grub at Halloween parties, whether it's limited edition Jaffa Cakes filled with bright green, slime-like puree, biscuits shaped like body parts or iced buns which resemble amputated fingers. All of which cost a fortune, so why not save your pennies and whip up your own terrifying treats?

While most superstores will unveil dedicated Halloween sections with everything from costumes to decorations, it's highly likely you'll be able to pick up equally suitable items in other departments. Most superstores will stock (much cheaper) fancy dress outfits year-round as well as decorations and tableware, which will work just as well. Orange paper plates will look spectacularly seasonal and expensive, ghost-shaped fairy lights can be substituted for cheap green or orange-tinted bulbs.

Okay, not necessarily a bat. A cat is a good option, too. The point is, Halloween costumes don't need to cost the earth, so if you're thinking about making your own, there are certain outfits which are easier to make than others. A fantastic bat costume can be created with black leggings and a black long-sleeved t-shirt. Simply cut up sections of an old umbrella to create a pair of wings. A cat costume requires similar garments, along with a cat-ear headband.

If Halloween simply sounds too much like hard work, take a moment to research what Halloween events are taking place near you. Attractions such as stately homes will often stage Halloween family fun days, with themed treasure hunts and fancy dress costumes. Websites for organisations like the National Trust and Visit Britain are great places to start.