Include the Classics... When it comes to party favors, don't forget to include the classics like candy, yo-yo's, coloring books, bubbles, crayons, plastic characters, etc. As long as they tie into the general theme of your party, they will be a hit.

Come up with some clever ideas rather than choosing the most expensive favors. The price of favors can quickly add up, especially if you have several favors and lots of guests.

Party favors can be homemade -- you can make candy, cookies etc. and wrap them in gift bags, create a computer generated coloring book, or have each guest make something at the party.

When possible, buy in bulk. There are several places that you can order bulk party favors... the best one I know of is Oriental Trading Company. They offer large sets of small toys and candy that you can divide up as party favors for your guests. Buying in bulk can save you a lot of money.

Make the favors uniform... in other words, make sure all your guests receive the same party favors. You don't want hurt feelings.

All the favors don't have to come in a goodie bag -- if you have a piñata, the children will get a considerable number of favors when it gets opened. In addition, if you follow my advice about each child 'winning' a game and receiving a prize, then the prize can also be considered a party favor.

Don't forget about doing a party craft. Children's party crafts are a great activity to add into just about any party, and they can often serve as a duel purpose -- they are a fun party activity and the kids can take them home as a party favor.