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I agree, birthday parties can be expensive when everyone is trying to do "one up" on the last party. We have done home parties (fun for the kids but stressful for me) and the last 2 years we have done bowling parties. I would never even THINK about having people pay for even the shoe rental!
The bowling party was a great deal IMO, $12 per child which included bowling, pizza and beverages. They also do all the paper goods, even the invites! I brought homemade cupcakes (easier to deal with than cake) and a cooler with hoodsie cup ice cream, and all was good.
As my kids get older, I will give them the option to do something a bit more pricey (movies and dinner or a laser tag/minigolf/climbing wall place with just a few of their friends).
I'm just waiting to see a jar at the local 7/11 asking for donations to sponsor a childs birthday party.
As for goody bags....I HATE getting all that chachki brought home after a party. They end up being clutter and then tossed. I have been making t-shirts for our "goody bags". The kids and I create a "logo" based on the theme of the party or something they like (guitars or princesses or whatnot) and I buy white shirts (on sale, of course) and print the logos on the computer paper, iron them on, and the kids have a nice keepsake. It's also great when they all wear them for a photo, and I include that as a postcard/thank you.
If my kids get invited to a party where they have to pay....OY VEY! And, out of all the parties my kids have gone to in the past 2 years (twins), more than half have been AT HOME parties, and the kids have a blast!
DD went to a sleepover where they had slip & slide races, pizza, played a Hannah Montana game, and watched a movie. She was in heaven.
You don't have to break the bank for kids to have fun!
Thanks for affirming that I have not yet become senile.

The families that expect other parents to pay admission so that their child can attend the party is one step away from begging or charging admission/cover charge.
Oh vey is right! Whatever happened to having a childs birthday party that the parents could afford and I wouldn't care if it was cake and ice cream at home without including ANYTHING else.