USE COUPONS: If you feel you must hand out Hershey Bars or Reeses Peanut butter cups watch your Sunday paper for coupons. There are almost always a few for different brands and if you match them up with a sale at least you'll save a little.
OTHER CANDY: There are a lot of kinds of candy that are substantially cheaper than those listed above. Lollipops, for example, frequently come in huge bags for a low price. Dress them up for Halloween by putting a facial tissue over the top, tying a black or orange piece of yarn around where the pop meets the stick and drawing on eyes...if you haven't guessed, this makes a cute "ghost pop". You can also buy an assortment of cheaper candies or gum and package them in sandwich bags. Seal with a Halloween sticker.
OTHER FOOD: You can hand out apples, popcorn, homemade cookies, etc. Be aware, however, that some parents are nervous about that sort of thing and might just throw the stuff out when their kids bring it home.
NON-FOOD ITEMS: Sometimes you can get packages of small toys (of the sort you would put in birthday party goodie bags) at a low price (especially at the $$ store!). If you are the organized type and see these over the course of the year pick them up and save in a box for Halloween. I recently saw pencils at 2 packages of 10/$1.00...this comes out to 5 cents/pencil which is far less than the price of a candy bar! Kids also love stickers. One lady offered Trick or Treaters a choice of candy or stickers. About 80% chose stickers! Use your imagination and keep an open mind about what qualifies as a treat. There are many parents out there who will appreciate that you didn't give their child more candy!
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