Yahoo Finance Why kids’ birthday parties are so expensive now
[Remember when the biggest expense at the party was hiring Bozo the Clown? Yeah, us neither. / Thinkstock]
When it comes to raising kids, everybody thinks they know best. From sleep habits to bottle feeding to car seats, there’s an endless supply of experts who would love to share their knowledge with you.
Birthdays are yet another divisive topic when it comes to kids. Advice about planning your child’s party will likely start with “In my day…”.
Annoying, but those busybodies have a point: it hasn’t been very long since most kids’ birthday parties were simple affairs held at home with hotdogs, bobbing for apples, and a cake made by Mom.
An informal survey of online forums suggests that low cost parties are still common, but more expensive options are becoming increasingly popular. There are now myriad ways to spend a few hundred dollars on a birthday party—for a child who won’t even remember it.
For busy parents, the convenience of outsourcing the work (and mess), and having someone else expertly take care of entertaining the young guests is understandable. But is that the only reason why these party businesses are booming?
Why is this happening?
It’s an “expenditure cascade,” a term coined by Cornell economics professor Robert. H. Frank to explain how higher spending among the wealthiest 1 per cent trickles down, so that people spend more on everything from houses to weddings. He explains that this is why the average house size grew 50 per cent between 1980 and 2007.
“When the rich build bigger, they shift the frame of reference that shapes the demands of the near rich, who travel in the same social circles,” writes Frank. This trend passes on to the next group, and the one below that.
How this trend of excess starts
Singers Beyonce and Jay Z rented Jungle Island, part of the Miami Zoo for daughter Blue Ivy’s second birthday. They visited the bird sanctuary with friends before dining at a pizza restaurant.
Kim Kardashian and Kanye West went all out with a “Kidchella” party for daughter North’s first birthday, complete with a Ferris wheel and bouncy castle in aunt Kourtney Kardashian’s big backyard in Calabasas, Calif.
On a short-lived TLC television show called “Outrageous Kids Parties,” the parents of one six-year-old spent $32,000USD on a princess-themed party. Was it worth it? The girl cried when the cake topper was the wrong colour, so we’re guessing no.
Parties for the rest of us
If you’re looking for a unique and over-the-top party for your little one without being too over the top, here are some options to check out from across the country:
The Little Gym in Halifax charges $305 for 60 minutes in the gym with instructors and 30 minutes in a party room, with parents supplying the food.
In Vancouver, TumbleBus mobile gym will park outside your home at $200 to $375 per hour. Extras such as face painting and a Spiderman theme are available.
A Toronto company called Games on Wheels offers two-hour video games parties “at your doorstep” for $599.
In Calgary, Mascot Parties offers a Royal Dress-up Princess party is $220 for 90 minutes for 12 children.
At the end of the day, all that really matters is your little one’s happiness. And if that means having a few of his friends over to play games, or a slumber party with her besties in the basement… consider yourself lucky.
