Depends on whether you want a family party or a friends and kids thing. Crafts can be cheap, popsicle sticks and glue make a great number of things and come cheap. Check online for craft ideas if you are haivng kids at the party. Or just get a blow up pool and some water.
Have just a cake and lemonade type thing rather than serve a meal.
Have a Teddy Bear tea and let the kids bring their favorite stuffed animal. Provide cookies and kool aid or juice (watered down of course) in little cups and they will have a blast. If you feel you have to have favors, make little bandanas for their animals or let them make an inexpensive craft as their favor.You could let them plant flowers in littel paper cups (they are cheap and dirt is usually available free.)
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