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My daughters just turned 5 and I did party-favor bags for the first time. Spent about $5 per child, I think, on dollar store stuff. I actually used these boxes that look like Chinese takeout boxes, only in bold, primary colors (red, blue, green, yellow) and used foam, stick-on, balloon-shaped letters to spell each guest's name on the box. Very cute!
As for party hats, all the kids seem to like them...just don't wear 'em long!
Have a fun party!
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