A poll of 3,000 parents found the cash was being spent on setting up themed parties, complete with magicians, DJs, face painters and loads of food.
They found the most important things for a party were goody bags, packed with toys, and the most popular foods were chicken nuggets and sweets.
But only 13% thought you should go home with a piece of birthday cake!
The survey found that the most popular theme was princess for girls and football or Finding Nemo for boys.
It also discovered that nearly three quarters of kids were allowed to invite 16 or more mates.
But if all this seems a little over the top, take a look at Brooklyn Beckham - his fifth birthday party cost a whopping £10,000!
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