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Extravagant parties for toddlers

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It appears as though kids as young as 1, 2 and 3 are learning the ABCs of over-the-top party planning. While they may be too young to remember their fabulous party, the guests certainly will.

Traditionally when a girl turns 16, a lavish party is thrown to celebrate this numerical milestone. Now it appears as though the age of extravagance is getter younger and younger

The average amount spent on children's parties has steadily increased since 2010 and the popularity of themed events is also on the rise, according to gigmasters.com.

In New York City, Red Carpet Kids hosts a unique movie star-themed party complete with makeup, wardrobe, and paparazzi. Owner Craig Saslow believes that celebrities are leading the way.

"Everybody wants the red carpet experience, everybody watches entertainment shows and reads magazines about their favorite celebrities on the red carpet," Saslow said.

For Suri Cruise's second birthday, $100,000 was spent on a party with 1,000 live butterflies.

"I definitely think there's a trend in birthday parties where people want to do things that are unique and different," Saslow said. "The child's birthday is the one specific day that's a real opportunity to do something above and beyond for your kid. What better way than to throw an extravagant birthday party."

That is definitely the case in New York City where a 90-minute party for your potty-training toddler at the famed Dylan's Candy Bar can run you $1,200.

For $10,000 you can book the entire wonderland of toys for an overnight at FAO Schwarz.

After a while, one begins to wonder: is it really about the kids, or is it about the adults?

"I think it's a mix," Saslow said. "Parents like to throw extravagant birthday parties so it can be a time for them to catch up with their friends. And get together with family."

Parents regularly celebrate children's "firsts" like a first step and the first day at school. But the first birthday is considered one of the biggest reasons for a celebration and in many cultures a lavish party is common.

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