Dear J.:
I have three children aged 8, 7, and 4. I have also struggled with the notion of having to plan fun, enjoyable, and memorable birthday parties for my children. I have planned and carried out birthday parties at my home, at a friend's house, at Chuck E. Cheese, at indoor playgrounds, at daycare, at Jump On In, at Build-A-Bear, etc.....you name the place and I've probably had a birthday party there! On the one hand, planning a birthday party at a facility that caters to these types of events saves the mom (and dad) from having to incur the wrath of what 10 children can physically do to your home and not to mention your sanity! On the other hand, these places can be a bit expensive because the staff is there to do all the work for you; hence, the financial commitment will probably be greater than if you had the party at your home.
I can remember telling myself on my oldest child's first birthday that I would not be one of those parents that makes a huge deal for my child's birthday and that I would have small family celebrations the way my parents did for me when I was growing up. (My parents had 7 children and our birthday celebrations consisted of my mom making a box cake which would be served after dinner--I probably received 2 or 3 gifts--nothing too fancy or expensive.) I was determined to carry on this tradition and I did so for the first couple of years. By the time my son was 4, the birthday parties were now taking on a life of their own. My son had attended many of his friend's birthday parties, which were also held at such places as bowling alleys, farms, gymnasiums, painting classes, etc, and my son was now old enough to realize that his birthday could and, should, be held at some special "place." I have noticed this trend of parents trying to outdo the previous year's birthday celebration, and I have totally fallen victim to this trend as well. My son's birthday is October 28 and my daughter's birthday is October 31. I have always planned a party for each of them every year because I feel like they both deserve their own special celebration. And, yes, the planning can be completely overwhelming. (I normally start planning the two parties a month in advance!)
You mention that you don't know many of the parents from your child's daycare. One great piece of advice I can offer is that inviting the children from daycare is a great way for you to meet the other children and their parents. I (and my children) have made many friends this way! You definitely want to be on top of who your children are hanging out with.....so to speak! As the children get older, they will want to have playdates and do more activities in the community with these friends. It totally helps if you are friendly with parents of your child's classmates!
If you want to keep your child's birthday reasonable and memorable, by all means, invite your single friends and perhaps a few children from the daycare. You don't have to invite a ton of people and worry about whether the children will be disappointed. You can find simple ways to make your child's birthday special, for instance, a few structured activities with an intimate (3 or 4) group of children. There are a ton of ideas on the internet!
I have a friend who personally writes and illustrates party invitations for her daughter's 3rd birthday. I have another friend who had a "movie-themed" birthday party in her home. She borrowed a projector, tacked up a sheet, served pizza and popcorn, and the party was a hit! On my daughter's birthday (which happens to fall on Halloween), we always go trick-or-treating.
I guess the bottom line is that you are the best person to know what kind of celebration is appropriate for your child. When the child is under 4, he or she really won't remember what took place on his or her birthday, although you do still want to make it special. If you can afford to utilize the above-mentioned facilities for your child's birthday, it certainly saves the parents from having to plan every detail. Most parents and children know what to expect if they attend a birthday party at Chuck E. Cheese, for example, basically the parents sits on the sidelines while the children are engaged in some activity
I hope this was helpful to you! Good luck in your future birthday plans!