Birthday Bashing: When Is Enough, Enough?

Are extravagant birthday parties a necessary evil?  Do you feel pressured to rent a birthday party place to "repay" the parties that your kids have attended? 

Huffington Post's Teresa Strasser outlines the social contract she calls "Kid Pro Quo"

How do you handle the pressure to celebrate birthdays for your kids?  Is it appropriate or necessary to plan an expensive, elaborate party for children that may or may not remember it? 

How can we balance splurging and honoring our children on their big day without letting it spiral out of control? 

For a frugal way to celebrate, here's a way you can hold a Birthday Party Book Swap for the younger set.