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One of the best parts about being a kid is the birthday parties. But when you grow up to be an adult and a parent, you find that kids’ parties can actually have a pretty hefty price tag.

In fact, the average parent will spend about $400 on a child’s birthday party. Given the high cost, it’s clear that children’s parties these days involve a lot more than just a sheet cake from the grocery store and a couple of balloons.

Photo: Unsplash/Victoria Rodriguez

But that’s not the only problem. Your child has friends, and these friends also celebrate birthdays, so as a parent, you have to factor in the costs of additional birthday parties.

Buying presents for your child’s friends can also become quite costly, but you also have to carve out time from your schedule to go to the store and buy a gift. It is no surprise that parents are looking to get creative with new ways to cut costs and time.

Photo: Unsplash/Jon Tyson

Enter the brand new trend known as a “fiver” party. According to TODAY, it is the latest trend amongst parents and it’s pretty cool. Rather than bringing gifts, guests show up to the party with a $5 cash donation that is then put towards the purchase of a larger gift.

Pretty clever, right? Not only does it take the pressure off buying a toy for a child that might not like it or already have the same one, but it takes off the stress of having to go out to the store.

Photo: Unsplash/Becky Fantham

There is another benefit, which is that it cuts down on the environmental impact with less need for gift-wrapping or gift bags. Plus, this means that the birthday kid can pick out a really big, really awesome gift for themselves with the $5 collection.

Not only that, but it’s a great way to teach your kid the value of money and how to have good spending habits by letting them handle their gift money and make purchasing decisions.

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