Throwing a Kid’s Birthday Party On a Budget, Is That Even Possible?
Tips to help you simplify and save while still having fun

If you’re a parent or caregiver to school-age children or you spend any amount of time around them, you will know that birthday parties are exciting and highly anticipated events… for them. If you’re the person who does the planning, executing, and purchasing for the birthday party, your outlook might be a bit less festive.

In fact, many parents and caregivers can actually find the planning and paying for their children’s birthday bashes a source of anxiety and stress. Often the pressure we feel to make the event “picture perfect” or as good as the Joneses’ party, can lead to impulsive spending decisions and a subsequent strain on the budget.

Celebrating is likely the last thing you’ll want to do when the bills roll in for your child’s birthday. Luckily, we’ve got some ideas to manage the costs as well as examine your triggers for excess spending and stress on what used to be a fun and simple event. Read on to learn more.

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Why Are Children’s Birthday Parties So Expensive?

Whether you’re a veteran at planning them or new to the party, as the costs tick up, it’s not uncommon to wonder – yet again — why are children’s birthday parties so expensive? Or, put another (guilt-inducing) way, how much should I be spending on my child’s parties? This then begs the question of whether the party is for the child or the parents. Obviously, issues like rising prices and inflation are outside of our control, but while planning and budgeting for the event, it can be helpful to understand why so many of us overspend on special occasions like birthday parties, even when we can’t afford it.

• Most of our spending decisions are more psychological than mathematical, which can explain a lot! When it comes to our emotions, how we feel and our level of stress will impact our spending in significant ways.

• Before planning out the birthday bash, check in with yourself about your level of stress and other emotions. Whether you’re grappling with feelings of guilt, anxiety, inferiority, or even sadness – related to the event or life in general, it’s crucial to understand the often-overlooked impact of stress on your spending habits.
• As stress levels rise, we tend to spend more money to try to ‘fix the problem’ or alleviate the stress. Unfortunately, this often leads to more bills and debt, and ultimately, even more stress.
• When we’re highly stressed out, sound financial choices become far more challenging, often resulting in emotional or impulsive purchases.
• Stress can hinder your ability to save and budget, exacerbating an already difficult financial situation. To break this cycle, it’s essential to plan your event in a way that helps you manage your money while also keeping your stress in check.

How to Avoid Emotional and Impulsive Spending

Use Party Planning to Help Your Child Learn Financial Literacy Concepts

Kids are only as expensive as we make them, and when it comes to planning a fun and budget-friendly birthday party, it’s important to talk to your child about their expectations, while of course, keeping your own expectations in check, too. Each family is unique, and while one friend might have had a party at an expensive venue, another might have planned a gathering at home. This is a great chance to teach your child in age-appropriate ways about making choices with financial considerations in mind.

According to a recent report, 40 percent of parents prefer to have their children’s birthday party at a restaurant or venue. While we all want to provide the best party we can for our child(ren), it still needs to fit the household budget.

For instance, taking your group of party goers to the movies, arcade, and out for dinner, may sound like the ideal fun and exciting birthday party with no mess at home. However, once you start to calculate the price of food, snacks, venue, and other incidentals i.e., goody bags, the costs can skyrocket.

Instead of overspending or going into debt for a party, discuss with your child how they’d like to celebrate their birthday. Maybe they’d prefer inviting just their best friend to the arcade and dinner, rather than the whole soccer team. Or perhaps they’d like to invite their entire class to the pool after school, enjoying chips and cupcakes poolside after their swim time. Planning the party between meals can save on costs without sacrificing fun. Ask your child if goody bags are essential, or if a handful of candy or an extra game would suffice. If they’re indifferent, skip the bags or give each child a small gift card for a snack at McDonald’s or a treat at Starbucks. This puts the cash towards something they’ll hopefully use, rather than a bag full of trinkets they can’t really use. Another option is to have pizza, snacks, and cake at home, with a variety of video games, movies, and music for guests to enjoy. By balancing budget-friendly options with costlier choices and incorporating your child’s ideas, you can find an affordable price point for a party your child will love.

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Think About Adjusting Family Gift-Giving Traditions

Gift-giving is a large part of having a birthday. If you’re fortunate enough to have grandparents, aunts, uncles, and other extended family involved in your children’s lives, think about adjusting your family gift-giving traditions. For example, the next time you’re asked by a well-meaning family member, what your child might want for their birthday, suggest smaller gifts or ones with a longer-term impact.

For example, contributions to RESPs or helping with payments toward sports or music lessons can be more practical and beneficial to both the gift-giver’s and the parent’s budgets. These alternative gifts not only allow for meaningful extended family involvement in your children’s lives, they also help your kids learn valuable lessons about finances and gift giving.

Want to Learn About Personal Finance on Your Own Time?

We have a variety of self-directed, personal finance topics that you can learn about at your own pace. Visit our Learning Hub for free, on-the-go financial literacy lessons that you can apply to any aspect of your financial journey – whether it’s budgeting for a birthday party, improving your credit, or paying down debts.

Get Help to Budget for Any Special Occasion

We’re not party planners, but our financial experts can help you build a budget for any special occasion. Throwing a fun and memorable birthday party shouldn’t put a strain on your budget. If you’re struggling to make the numbers work, Reach out to us for a free, no pressure appointment with a friendly, accredited financial counsellor. How to Save Money With SMART Financial Goals.