Over the last ten to twenty years, kids’ birthday parties have morphed into big business. You need a cake. There are party supplies to purchase. Maybe you want to rent a bounce house or a pony to mark the the occasion. Don’t forget the decorations. Or perhaps your family has a tradition of dining out to honor the birthday boy or girl. With the number of options and limitless favors, balloons, plates, napkins, and pinatas to choose from, it’s easy to feel overwhelmed and then go over budget, too.
These are the lessons we’ve learned over the last fifteen years when it comes to kids and birthdays. We love to celebrate but we don’t love overspending. Here are some tips to help you create memories without going overboard.
Mark Milestone Years
Before we even became parents, some wise friends of ours encouraged us not to jump on the party bandwagon. They explained that instead of throwing a huge friend party each and every year, they chose milestone years of 1, 5, 10, and 16 to allow their kids to host those types of gatherings. On the off years, smaller celebrations with family and close family friends occured.
We adopted this model before we began paying off debt and have continued to hold on to it. Because a friend party can be a huge investment in time and money (and depending on your kids’ friends emotional energy), you don’t have to hold a grand fete every single year. You can choose which milestone years you will mark. In particular, keep in mind that toddlers and preschool aged children are unlikely to even remember friend birthday parties.
Allow Your Child to Manage the Budget
Probably one of the easiest spending traps to fall into when it comes to birthday parties is not setting a target dollar amount you’d like to spend. Instead of keeping a boundary on your budget, you pick up items here and there without paying attention to the total cost.
Birthdays can actually be a great time to help your child build personal finance skills. Set a total amount you’d like to spend this year and then allow them to pick and choose items based on this budget. This simple practice helps kids (and maybe you too) realize that for you to say yes to one birthday party element might mean saying no to another.
Help children build a list of wants and needs for the party and then price the items out online or in stores. Using cash to purchase things helps us all realize the finite limits of our money. So after you’ve selected your budget amount, get cash from the ATM and place that in a special envelope that you allow your child to decorate. Spend out of the envelope when you make purchases.
Think Big Picture
My husband’s contribution to birthday parties for our girls always involves streamers, preferably in two to three colors. He hangs them all over the house, creating curtains of celebration. We purchase bargain streamers because we realize in the end, these decorations are not permanent. They will be placed in the trash weeks or maybe even days after the birthday party is over.
The majority of the party industry revolves around consumers purchasing what one day is used for decor and celebration and then the next finds its home in your garbage. Balloons, pinatas, centerpieces, party favors, invitations, and more have a short lifespan. For this reason, keep a big picture perspective when purchasing party goods. It doesn’t mean that you forgo decorating all together, but that you make wise choices about the items you do buy and look for bargains and discounts.
Buy Permanent Birthday Decor
Close to a decade ago, I purchased a “It’s My Birthday!” felt sash on a bargain website. Each year on their special day, our daughters dig through the closet and pull out the sash to wear to school or at a birthday gathering. We also own a birthday headband given to us by a dear, sweet neighbor. We own a red plate used for special occasions, too.
Buying permanent decor and party supplies allows you to create memories based around traditions. Plus, items like these can be used for more than one celebration and for more than one person, too. In addition to birthday themed items, you can purchase more permanent decorations that could be used in your child’s room or as home decor. This year, my youngest daughter chose a Wrinkle in Time motif for her party. I found a couple of affordable printables on etsy with quotations from the book. I used them for centerpieces at her party and now we’ll frame them to hang in her room.
Focus on Experiences Over Stuff
My husband is fond of the expression “Money is fungible.” I tease him for his formal language but his sentiments are spot on when it comes to planning and executing birthday parties. All money has value. In order to spend money on something, you’re saying no to spending money on something else. So while you could throw a slamming sixth birthday party for your child to the tune of hundreds of dollars, you could also invest that money in a 529 savings plan and help pay for their college.
Among your free experiences, you might consider picking up some birthday freebies with your child. Check out these posts for places where you can find birthday freebies:
Sometimes, it’s smart to opt for smaller celebrations in light of bigger goals. Whether you want to move up in house for your growing brood or go on a wonderful vacation or help your child pay for college or even fund a down payment for a home for your child someday, your choices matter.
In the end, your child is unlikely to remember most of what you do to celebrate their birthday. They will remember the people who love them, though. You can make your son or daughter feel special without stuff. Focus on the time spent and invest the money you would have spent on greater goals.
In our house, we celebrate birthdays for almost an entire week. However, our celebrating doesn’t always equate to spending money. Remember what and who really counts and then mark special days with joy. Create memories to last a lifetime and a financial legacy to match.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission.
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