We all want to give our children everything in the world, but sometimes it's just not practical. This is especially true when it comes to birthday parties. If the thought of your child's birthday party conjures up pony rides, carnival games and maxed out credit cards, think again. It's totally possible to have a fun and memorable party without spending a fortune.

The first way to save money is by staying at home. Spending hundreds of dollars just on a location is totally unnecessary. Your home and your backyard are a perfect place to host a party. You won't have a time limit on the party, you won't have to deal with rude staff and you definitely won't be paying through the nose for your location. When you host the party at home you can invite as many people as you want to and you don't need to worry about them meeting together at a different location.

Save money on invitations by printing them yourself. You can create one-page fliers on your computer in the theme of your party, and then mail them out in business-sized envelopes. You and your child can decorate them with stickers, too.

If you time your party right, you can save money on your food budget. Instead of serving lunch or dinner, time your party for mid afternoon. You can serve light snacks followed by cake and ice cream. There's no need to make an entire banquet for your party guests. This can really help trim your overall budget.

Baking your own cake is another way to save money. Store bought cakes may look fancy, but they come with a high price tag. There's no reason why you can't buy a cake mix and make one yourself. If your child is old enough, he or she can help with the preparation. You can find some great decorating tips online or in cookbooks. With a little practice, you can make a cake that rivals the one from the local bakery. Plus you won't have to worry about picking up the cake and transporting it home.

When it comes to decorations, there are lots of ways you can save money. Although party companies like to make themed plates, cups, bags, invitations, napkins, tablecloths, etc., it doesn't mean you have to buy them. Once you pick the theme of your party, just select a few key items that you want to feature. For example, use themed invitations and balloons, but keep the other supplies in neutral colors. This will save you a lot of money.

Instead of sending party guests home with a bag full of plastic junk, why not skip the goody bags and try something more creative and less expensive? Depending on the theme, you can give out seed packets, balloons or craft supplies. A $2 gift that's worth keeping is better then $4 worth of dollar store trinkets.

By following these tips, you can create a wonderful birthday party for your child without breaking the bank.