After a frightening drop in Halloween purchases last year, according to the National Retail Federation, this year Americans will spend $66 each for costumes, decorations and candy. But if you're scared to spend an arm and a leg, that's okay, because this is one holiday where you can use your head instead of your wallet.

First, find out which costumes are popular this year. Some experts say the most popular costumes will be Avatar, Alice in Wonderland, and Lady Gaga. Now start thinking how you can make these costumes instead of buying them at a high price. It might be cheaper to buy the props separately and make your own costume. Check for stuff you may have at home, can get at garage sales and thrift stores. It's not hard to improvise.

Another idea is to buy used costumes from places like Ebay or Craigslist. If you need to make things like green sky, hairy warts, and scabs you can use household items such as corn starch, syrup, shortening, and food coloring. These items are a great substitute for an expensive makeup kit, you can check online for instructions on this. Items such as Styrofoam, Cardboard, Milk Jugs, Solid-colored sweats, and your imagination can bring it all together. A few cotton balls for 3 cents can make a spiderweb that can cost $3 in the store. Bottom line is just because you don't have a big budget doesn't mean you have to skip Halloween.