1. Decide what kind of party you are having. Are you just inviting your family, your child's classmates, etc. Are you planning to have lunch, dinner, just snacks, or desserts? Do you want to have games or entertainment?
2. Plan a menu. When you have your menu done several weeks in advance you can pick up the items you need as they are on sale in the weeks before your party. I'm also a big believer in foods that can be made ahead of time. Sure it's fun to grill out for the party but then you are busy manning the grill when you could be spending time with your guests. Also, if your food is prepared ahead of time you will be able to have all the dishes done and the kitchen cleaned up from the prep work before your guests arrive.
3. Shop year round. If you like to give bags of party favors to your guests or prizes for games you can save a lot of money if you purchase them throughout the year. The Target Dollar Spot is a great place to stock up. When they discount items to 75% off you can buy enough favors for a party for just a couple dollars. They often have themes too like Curious George, Dr. Seuss, or Disney Princess that you can build your party around if you want. After the holidays there will often be clearanced favors that are in holiday packaging but the favors themselves are not holiday themed. That can be a great place for additional savings.
Party items go on clearance periodically just like everything else. If you find some princess party ware you know your child will love go ahead and buy it even if the birthday party is some months away.
4. Pick generic themes. Having a princess themed party is going to be less expensive then having a Disney princess themed party. Having a sports themed party is going to be less expensive then having a Packers party. The various dollar stores are a great place for party ware. They often have plates, cups, etc with various generic themes. If you can't find a theme you like just pick a color that goes with your party. Pink for princess, blue for ocean, etc.
Be creative with your decorations. We had a firefighter party once. I got red tableclothes at the Dollar Store and picked up some firetrucks from the thrift shop. The trucks were less then $1 a piece and made fun centerpieces. And after the party my child had a great time playing with his new collection of fire trucks.
I made this paint palette cake for my little artist. We used plain primary colored party ware and hung her favorite drawings up for everyone to view. It turned out beautiful and everyone loved it. Most of all, she thought it was fabulous and that is what matters.
If you have some Star Wars figurines or Princess dolls use those to decorate with your theme. The chances are good that if your child chooses a theme it's because he/she likes it. So she probably already has toys or pictures that you can use to decorate.
5. Make your own cake. Bakery cakes are beautiful but quite expensive. Making your own cake is not as hard as you think. They don't have to elaborate to be wonderful and make your child very happy. Familyfun.com is a great resource for cakes. They have lots of different ideas with different skill levels and give you step by step instructions on how to make them. I made these sports cakes for my three boys for their group party. They were really easy to decorate and they turned out great. Sorry, the picture was taken before I cleaned the stove :)
6. Don't worry about the Joneses! If your child just came home from a friend's birthday party with $20 in party favors brimming with tales about the elaborate party with clowns and bouncy houses and all the fun money can buy DON'T BE SUCKED IN. You do not have to give this kind of party for your child. Ask your child what they want. Your child may consider a camp out in the front yard with a couple of friends to be far superior to an elaborate crazy party. Find out what your child wants and talk with them about how to make it happen within your budget.
7. Have a gift closet. If your child attends a lot of classmates birthday parties or you have a lot of nieces and nephews (I have 14) you need a gift closet!! Buy toys as they are on sale or clearance throughout the year and put them in your closet. (It doesn't have to be an actual closet I use some Rubbermaid bins.) Then when your child comes home with a birthday invitation let them pick a present for their friend out of the gift closet. You can easily save 50-75% this way. During the school supplies sales stock up on markers, crayons, and paper. These items make great gifts because almost all children like to receive them and they are at rock bottom prices at back to school time.
8. Have fun. Your child is going to remember the fun he or she had at the party not whether or not the invitations matched the plates.
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