Halloween is a fun time of year to celebrate all things scary that go "bump" in the night. But it's never fun when these creepy encounters involve your money . Here are a few blood-curdling tales of financial horror.

1. "There once was a man who had no budget ..." Oh, the horror! While some people think budgets are limiting, a true budget represents financial freedom. Budgets, also called "spending plans," help you by placing limits on spending, so that whenever money leaves your fingers, you know that you don't have to worry or panic because you've planned ahead for that expense.

[See: 9 Scary Things Consumers Do With Their Money .]

Looking for a good way to plan for upcoming expenses? Some people like to use envelope-style systems to budget even more effectively. How does it work? Take your paycheck and divide it among envelopes for different areas of your life, such as groceries, rent, auto gas and maintenance and personal care. When the envelope is empty, you can't spend money in that area of your life until your next deposit. The good news? There's no need to do this manually by heading to the bank anymore. Many companies are introducing apps that can help you make the most of every paycheck using this method.

25 Ways to Fix Your Finances Fast

2. "A family embarked on a ski vacation, and the primary breadwinners had no life insurance ..." If you're a member of this particular family, this story should keep you awake at night. If someone depends on your salary to live and you're no longer around to cover the bills, life insurance plays an important role. While there are many types of life insurance, for the vast majority of people, term insurance is perfect for their needs. It covers a specific amount of money for a predetermined length of time, and is most often the least expensive option. Every financial product has a downside, though, and term insurance is no exception. When the term expires, you have to buy new coverage. Because rates are based on your age, if it turns out that you still need insurance when yours expires, you're probably old enough that you may not be able to afford the much higher rates of replacement coverage.

How do you know how much insurance is the right amount? List all of the expenses your heirs will need to cover when you pass away, subtract any savings you currently have, and there's your number. Because there are some present value calculations involved, using a reliable online calculator is probably your best bet.

[See: 10 Frugal Ways to Save This Fall .]

3. "On a dark and lonely night, a woman ran screaming into a store with her credit card, snatching up purchases without a plan to pay them off ..." She's in big trouble because she doesn't understand two important credit terms: credit utilization ratios and late payments. These are two of the most important parts of your credit score. While making payments on time keeps your credit healthy, using very little of the credit you have available (credit utilization) is also a large piece of your score. Improving your credit score is easy: Establish lines of credit, use very little of them and then pay them off in full every month.

What should she have done instead of just whipping out a credit card ? Ultimately, she’d already have the funds set aside ready to pay for purchases in full immediately. Without a plan, she’ll pay high interest and could damage her score and her ability to gain the trust of creditors in the future.

What’s your first step to better credit? Find out how your history looks by requesting a free annual credit report.

4. "A 16-year-old boy was chased through the haunted dealership by car salespeople ..." He's locked himself in the shed but he knows they're coming to get him. Seriously, car salespeople aren't anything like boy-chasing zombies, but they definitely have a plan to send you home with a new automobile. If you walk onto a car lot without your own plan, how do you expect to score a fair deal?

Here are a few tips: Don't negotiate based on price. Talk with at least three dealers and let each of them know you're shopping for only their best price. Decide on the perfect car for you before you begin your negotiation, so that you don't become emotional about the purchase.

5. "A couple was lured into the wicked witch's cafe ..." What's one major budget-buster ? Restaurants. While the food might taste good, you can do better at home. Forgetting to meal plan is a real danger. Start with a list of the meals you wish to eat at the beginning of the week, then shop online and through the newspaper for deals on those items. Take advantage of specials and shop only for the things on your list.

[See: 12 Habits of Phenomenally Frugal Families .]

How do you clip coupons without it becoming a chore? Many grocers have moved their systems online. The next time you're at your favorite store, ask if they have an app which will alert you to deals. You may be surprised at how easy it is to save money while feeding your family.

Aren't those some horrible stories? There's good news. You don't have to be like these unfortunate people, and have your happy, fun Halloween turn into a fiscal nightmare. With just a few small lifestyle changes, you'll find that you enjoy all the fun even more because you've kept a few extra dollars in your pocket and protected your family.

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