|
 I just went to a 9-year-old's party that put most weddings to shame,
with a luxury venue, a deejay and dance floor, gourmet food,
unlimited video-game play, a bowling alley, laser tag arena and a
multi-person staff that kept everything moving with military
precision.
Happy birthday, indeed.
"It is getting a little ridiculous," said Rachel Cruze, co-author of
the book "Smart Money Smart Kids." "It has become a lot more about
the parents than about the kids."
While an over-the-top birthday will cost thousands of dollars, even
a run-of-the-mill package at a chain restaurant can hit several
hundred, or much more in some locales.
Popular kids' spot Chuck E. Cheese, for instance, charges roughly
$18 per guest for pizza, drinks, a reserved table, party favors and
tokens. A Bounce U party for 15 with pizza runs $300 or more,
depending on the location.
The bill is high even when children are too young to remember the
event. According to a poll by website BabyCenter.com, 26 percent of
parents report spending more than $500 for the first birthday party
alone.
Think about the financial ripples. Multiply a $500 annual party by
two, three or four children, and we are talking about a significant
portion of after-tax income that could be earmarked for more
important goals.
According to one survey by supermarket retailer Asda, the average
parent in the United Kingdom spends an astonishing $28,000 on a
child's birthdays through age 21.
Even half of that is a punishing bill. "That amount could cover 45
percent of your child’s first year at a private college, and
probably much more, when you factor in investment growth," said
Atlanta-based financial planner Niv Persaud.
The big-bash trend has some parents saying that trying to outdo
peers with the best party pics on social media is not worth the
price tag.
Nonprofit director Jen Wohl of Brooklyn, New York, decided she just
could not afford to keep up anymore. So her son's last birthday
party consisted of a gathering with friends in a public playground,
some home-baked coffee cake and brownies, and a total bill of $50.
Her verdict: It was the best decision she ever made.
"I just thought, 'What is it my kid really likes to do?'" she said.
"I realized that a good football game with 10 of his friends would
be way more fun for him than a big $2,000 party."
Some tips for hosting an affordable birthday party for your precious
little one:
* Get creative
Kids adore sleepovers, which will let you skip the retail markups.
Or you can gather in a public park with a few picnic tables and have
a potluck, suggested Cruze, whose father is personal finance guru
Dave Ramsey.
[to top of second column] |
Brooklyn's Wohl once asked local firefighters for a tour of the
firehouse for 10 kids, to which they readily agreed. "Throwing money
at something is actually the least creative thing you could do to
celebrate your child," she said.
* Limit the numbers
One reason behind whopping birthday bills: Parents and children feel
obligated to invite everyone in class, or to invite everyone who has
ever invited them.
Succumbing to Chuck E. Cheese? Keep that celebration to 10 kids
instead of 40, and save 75 percent.
* Make it an occasional splurge
A big birthday party once in a while can be fun, but it does not
have to be every single year.
"One of the things I have practiced personally is to only have one
child have a 'big birthday' each year," said Chris Hardy, a
financial planner in Suwanee, Georgia. "I have three kids, and they
rotate which year is the big year for their party."
For bigger milestones like bar mitzvahs or sweet 16s, for instance,
feel free to loosen the purse strings. Otherwise, keep it cheaper
and low-key.
* Use it as a teachable (and charitable) moment
Children learn from every financial decision you make, whether you
realize it or not. One way to make it count is to do something like
turn a birthday into a fundraiser.
Charity: water, a nonprofit organization working to bring people
clean drinking water, said its average birthday campaign raised
$770.
Says Cruze: "If you can encourage that spirit of giving, that is an
amazing thing."
(Editing by Beth Pinsker and Lisa Von Ahn)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
