I know many families who have been in similair situations. If you focus on having a fun kids' party rather than a fancy elaborate event, you can make it truly affordable. I would cut down your guest list to have only kids, a few of your close friends and your immediate family. I'm sure you already had invited eveyone to your son's Bar-Mitzvah last year, so people would understand that you are making a smaller, less costly event for your daughter especially if you eeeeeven tell them such.

What I would suggest is that you find a smaller venue than the one that you had used for you son's Bar-Mitzvah...perhaps a nightclub/disco, a trendy restaurant, or a community hall where there is already a fun decor, good food and room to dance, such as a Hard Rock Cafe. If you have a large enough basement you could do it at home or even decorate your garage. If you are creative, you could also make inexpensive invitations by doing it on your computer (or have your kids do it!) instead of having them printed. You could do a buffet with finger foods and kids' favorites such as a pasta bar platters instead of a formal sit down meal and a huge sweet table. You could even make a fun theme where the dress is casual, so that the whole event would lend itself to being a more low-key, affordable experience. The most important thing is that your daughter is happy and that she has a great memorable time. If you're not looking to impress others, than any place can do on a reasonable budget! I have done it many times. With a little creativity, imagination and determination, you can make it happen at the right price for you.

1) Budget
Do you have an idea of how much you want to spend on your event? This is very important, as the budget will determine what you will or will not include in your event. The details can be endless so you must be able to specify your needs and figure out approximately how much you are able to spend on each service.

2) Number of Guests
How many people will you be inviting to the event? This will affect the space you will need as well as the amount of food, which will be ordered.

3) Place
What kind of party are you considering? Is it formal or casual? Will you be dancing or just mingling?

4) Entertainment
Do you want to be entertained during the event? If so, you need to consider if there are more children than adults coming to the event. This will determine whether you hire a magician vs. a psychic, for example. If it is a larger event, you might want to consider having a live band or a d.j.

5) Food
Once again if the party is formal or casual this will affect the type of food being served. Do you want a sit-down meal or buffet? Perhaps you want to make a meal just put of appetizers/finger foods. The party could also be an informal get-together with coffee and dessert.