Parents often tell me that the cost of all of the birthday parties their children attend each year really adds up—and that doesn’t include the expense of throwing their own children’s birthday parties. Why is attending parties so expensive? Gifts!

If your child attends a birthday party for each classmate, even spending a small amount on each present can result in a big expense. Kids often feel pressure to give a good gift, and parents can feel this way as well. But these days, when some schools require that all children in a class be invited to birthday parties, the cost of gifts can be a problem. If you have 25 kids in a classroom and 20 decide to have some sort of party, at $10 a pop for each gift you have just spent $200 on presents. This only takes into account one of your kids; if you have more, you can see how quickly the costs multiply.

It all adds up, but you can make a budget so you won’t break the bank. Think about how many parties your child will be invited to this year. If you have more than one child, you will have to take all the parties your kids will attend into account. Once you have this estimate, you can work out a budget for gifts.

Spending anywhere from $5 to $10 on a child’s birthday gift is plenty. The present doesn’t need to be big, just thoughtful. You might consider spending a little more only on your child’s special friend or a family member.

$5 to $10 can purchase great activity books with colorful markers or crayons, interesting little games to play in the car, a cool miniature toy, a candy surprise, an interesting book, etc.

One party present won’t break the bank, but 20 party presents may during one school year. Be aware of this, plan a present budget, and stick to it. Ask yourself this question: Do you remember what you got on your 7th birthday? Neither will this generation.

Get your family organized and on the same page with Cozi, the free online family organizer.

--Lisa Kothari, Peppers and Pollywogs