We don't do parties.
I have no desire to deal with all the potential problems as well as cost. My DS is going to be 4 (in 2 days!!) and this year he mentioned a couple times "his party" as he has been to several friends' parties. But he seemed to have no problem dropping it when I explained to him that we don't do them. We had a small party when each LO turned 1 (cake, make-your-own pizzas, and gifts for DD, can't remember DS except he cried about touching the cake) and then we do a family thing (special dinner, cake and presents) the other times. We may also do a special outing-last year we went to the local museum for their dinosaur trail. We will probably have a couple b-day parties over the years. This is what my family did for me and what I feel is right for our family.
I have also told DS's friend's moms that we don't do parties, so they won't feel they weren't invited.
Good luck with your decision, OP.
Kelly, wife to DH, mom to Caden Reese (10-2-06), Tessa Brynn (12-26-08 ), and Maddox Quinn (7-16-11). Fur-mama to Finnegan, Ripley, Raisin (my little kitty amputee) and Kimchi. 748/2011, 2028/2012, 2023/2013, 1256/2014, 353/2015