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Decorating for Halloween can be inexpensive if you keep it simple and remember that the most important part of Halloween decorating is to create a spooky atmosphere. Dimming the lights on a candlelit pumpkin creates as much of a Halloween mood as any expensive decoration. Keep in mind also that spending a few dollars on pumpkins pays off frugally when you use them both for decorating and eating.
A bag of fake spider webbing is an inexpensive way to give a room a Halloween look. Find bags at most Halloween shops, drug stores and dollar stores; when you pull the webbing correctly, one bag is more than enough for an average-sized room. To make the white material look like spider webs, pull apart until it is so fine that there are no white clumps. The webbing can then be draped over furniture or hung with tape.
Candlelight gives an eerie atmosphere for Halloween. You don't need special themed candle holders. Use what you have, and place around the room, making sure the flames don't go near anything flammable and are out of the reach of children.
All you need are a few sheets of black construction paper and a pair of scissors to make simple bat shapes that you can tape to the walls and windows. At night, the silhouettes on the windows will be well visible from the outside.
Small pumpkins such as the small sugar variety are usually less expensive than the giant jack-o-lantern pumpkins and are especially good for indoor decoration. Instead of carving, decorate with non-toxic paint. To get the most out of your small Halloween pumpkins, cut open on the holiday and remove the seeds. Rinse, season and bake in the oven at 350 degrees for 20 minutes or until crispy. Cut and peel the remaining pumpkin flesh and boil as you would a potato until soft. Puree in a blender or mash with a potato masher and use in any recipe, such as pie or soup, that calls for mashed or pureed pumpkin.