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I have a birthday banner that goes up, and just got from avon a string of lights that are cupcakes! I ask the child the day before to choose either cupcakes or cookies and we make them together the next day as part of our "craft". Also Luch is the BD boy/girl's choice.
I too gift a gift I spent $30....last one I got a mini-camping-folding-chair (she loved DD's) plus a little dress & hair clips. I noticed her clothing were a bit too small. OH plus a sticker book of her favorite toons Dollerama!
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I usually get a few balloons filled with helium so they can pull on the string and watch the balloons bounce off the ceiling. We ice cupcakes with a special topping for the birthday kid who gets to wear the birthday crown. I always give a book as a gift with a message for the child.
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I used to do more of a full-on party, but now it's more of an acknowledement. There are always decorations when they arrive, then we go about our business. At lunch, it's a special tablecloth and hats, followed by a cake or cupcakes. And at the end of the day I send them home with a very small gift....$5. And the other dcks make cards for the birthday kid. I just had one this week, then all the rest are in April!!!!
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We go out for lunch or have a picnic (depending on weather of course)....something special. I also make a cake with very bright colours and decorate it with fresh flowers, which the kids get a kick out of. We put them in our hair, through buttonholes, etc. I usually don't do gifts as they don't seem to really be bothered about anything beyond the party.
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I always do a birthday cake, decorations, and a little gift from ALL the kids. We take pictures and make them feel really special for the day!!!!!! Cheap! and the kids LOVE it! :)