I remember making these as a kid and last year I made them with my daughter. We made them again this morning and are planning them for her party.
Take a lollipop (Dum-Dums or Tootsie Pops work well) and cover it with a white tissue, centering the tissue over the top of the lollipop. Gather the tissue and tie a string around the base of the lollipop securing the ghost in place. Use a marker to make eyes and and a mouth.
My daughter can do the draping & the drawing. I do the tying.