A.L.
Balloons. Get a bunch of helium balloons, one for each child, plus a couple of extras, just for the festiveness of it all. Put a large Mickey-Mouse lollipop on the end for a balloon weight, and each child takes one home. Decorations AND party favors - done. It's cute, inexpensive, and the balloons usually don't last more than a day or two, so the parents aren't stuck with more little trinkets.