You can celebrate it as a Family Birthday, the day that you all truly became one complete family. You can go for a themed party, or simply keep it light and traditional. But since the occassion is about the children, I would find out from them what would make it special for them, and then combine some of the ideas to give them the party of each of their dreams.
Letting the children be involved with the planning of the party will help to make it special for them as well. You can have the party at home, or rent out a special place, or go out to an amusement park, the possibilities are endless, just think about what the children would want, ask the children what they want, and then you will enjoy watching them have fun, no matter what is planned.
One suggestion is to take a family photo on the day, every year, to reinforce that the day is about family, and what it is that family means. It should be a day of fun, togetherness, and most of all love. As long as those are present, it doesn't matter where you are, who is with you, or how much money you put into the day.
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