Having a large party can also be cultural, I know Latinos and Hawaiians tend to have very large first birthday parties, in large part because the infant mortality rate is much higher (at least tradtiionally). Of course, you can do it however you prefer and even a large party does not have to be super expensive (also it helps that the godparents usually pitch in with the cost). There are many good tips here regardless of what size event you want to hold.
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