All you need are styrofoam cups, an empty 2 liter pop bottle and tape. We are in a big cold snap right now and my local Home Depot was sold out of faucet covers, so I came up with an even better idea.
Ingenious idea! I wish I'd read this before buying a faucet cover for $3-4!
When my outdoor faucet froze and sprunk a leak I went to a hardware store and bought a new outdoor faucet especially made for cold weather. The pipe is about a foot long that is attached to the faucet. The valve is located in the long pipe so when installed the shut off valve is well inside the cellar.
Another way to prevent the pipe from freezing is to find the shutoff valve. We were terrified that our outdoor faucet was going to blow because it seemed to have sprung a leak that left us with a small glacier attached to the back of our house after the first real freeze. (It's also a frost-proof faucet like Harry's above) I poked around a bit and found that just inside our wall (in our mudroom with exposed pipes, but it could be just inside your basement wall) there was a shutoff valve.
Here in Sask we all must have faucets that are frost proof, because no one does anything special at all, and no one has any problems. The temp goes to -40 or lower, so if things were going to freeze up, they would certainly do so. I have 2 outdoor taps. I just disconnect the hose, and shut it off. In a former house, I had an outside tap that had hot water, and one year I used it to flood a rink for my kids. No problems at all.