Are you sure you need to invite ALL her classmates? I read somewhere that inviting as many kids as the child was old was a good plan.
first off, have the kids dress up like old times. capes, hats, fancy clothes. no monsters or bad guys!
Cheap ideas: don't go out somewhere. make your own cake. make your own party favors.
actually, someone just asked this type of question and I responded today (Jan 12?)
my ideas included having the kids make their own party favors by using paper plates to make shields, hats (coneshaped for the little girls, with a tassle or ribbons taped to top of cone),
the kids can fill their own party bags (brown paper lunch sacks = leather pouches; kids can decorate), with candy or items that represent things:
red licorice = red for heart = faithfulness or courage
chocolate kiss = love
pretzel = brown = earth = steadfast, faithful
gold covered coin = treasure = worthy, valuable
stickers = leadership = leave your mark, do good
pad of paper & pencil = communication = true
50 cent bag of peanuts = earth = provider
lego piece = teamwork = unity = all part of the whole
kernal of corn = gratitude = reminds us of thanksgiving
eraser = gets rid of mistake = saying sorry when wrong
etc. - make it up!
games others suggested: bag of balloons = blow them up and have the kids pop them without using their hands or feet. This was evidently pretty funny. (be careful - flying bits of broken balloon can be inhaled by small kids)
Music freeze: Dance to music, when it stops, have the kids (and parents?) freeze in place. Maybe this is where you could have them holding their decorated paper bags and you could give each a piece of the candy/party favor and explain the significance or meaning. the music could be from old times - like Baroque or old English ballads, etc. The expense would be to purchase a CD.
I don't know if kids would tend to hurt themselves or each other with this idea, but inexpensive chopsticks from a chinese restaurant could be made into wands (fairy princess or magic wands) Paint sticks might be an option.
Whatever you do, decide to have fun and just tell the parents that you're on a very tight budget and had to be creative!
Kids love to color and glue and they love a fun story. Just have fun.
Oh! How about a treasure hunt around the house and yard? At each clue spot you could have them do a different activity - fight the dragon, pin the tail on the dragon, plant a field, dig for treasure, build a castle, row the boat across the snake-infested lake, etc. Carry the golden egg across the "field" (you know - an egg from the goose that lays the golden eggs) = team relay game
jousting! two or four teams: have them decorate boxes without tops and bottoms as horses. swim noodles are the jousting sticks, knock a block off the other guy's head. The kids "wear" the horse around their middle and have to coordinate holding the block on their head, and holding the jousting stick. I think the horse would need to have shoulder straps so the kid wouldn't have to hold the horse too!
Is this too much?
oops - I've been typing way too long!
Have fun! let us know what you decided to do!
A.