Many people opt for community halls or throwing their party at restaurants.
Whilst this is all well and good for kids parties the cost can be fairly high.
I suggest holding the party at home, or at a relative's house.
Move away all furniture to give your children enough space to mingle as well as opening up the yard so the children can play out there.
The price of this will be free.
Your child may be begging you to hire an entertainer such as a clown or magician, and this is something that your child will love.
Unfortunately these entertainers need to earn money somehow.
Don't worry however because you can create your own party games for children.
A particular hit with the kids are games which involve prizes.
There will be a minimal cost to supply these prizes, however this cost will not even be a dent in how much it would cost to hire a children's entertainer.
The next stage involves dealing with the invitations to the kids parties.
You don't need to purchase expensive invitations; you can quite easily just print out a few from your computer.
If you want to save even more money then you could just directly approach the parents of the children who are invited to the party.
You also need to plan food for your kids parties.
Many people opt to hold buffets, but if you buy readymade for these then the cost can be fairly high.
It makes good economical sense to prepare the food from scratch.
One of the best recipes I have found for children's parties is pizza.
This particular food is ideal for parties as it can be used as a source of entertainment as well as for food.
For this you will need a good selection of ingredients as well as some short crust pastry.
The children at the party will then be able to create their own favourite toppings before you cook the pizza.
This is a particularly enjoyable event for all children involved.
These are just a small selection of ideas you can use to create kids parties that your child will absolutely love whilst sticking to a budget.
As you can see there is no real reason why you would deny your child a party due to money issues.
I am sure if you got a bit more creative you would also find other areas where you will be able to make savings.