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Isn't there a way to celebrate a child's birthday without having food? Can't the parents instead bring little bags of those cheap little toys you find with the party hats and stuff?
I can see that spiraling WAY out of control, finance wise. A batch of cupcakes for 30 kids costs can be made cheaply, at home, for way less than $10.00, using cake mixes. Baking from scratch costs even less, probably less than $5.00 for the whole class. Granted, there may be parents that buy the cupcakes and pay more, but for the kids, the homemade and store-bought cupcakes are considered about the same, in my experience. Cupcakes are considered "the norm" for birthdays, so it minimizes some amount of the parental competitiveness.
I can just picture how different it would be if parents were bringing in treat bags for the kids. First of all, even if you filled the bags with a sticker and a superball, and the bag is 10 cents, the stickers are 5 cents each, and the superball is 20 cents, each bag is going to cost 35 cents to make, which puts you at a cost for 30 students of 10.50, already more than you would have spent on the cupcakes...and that is for a sticker and a superball. Now picture the kid whose parents don't have much money, whose birthday is being celebrated on the same day or same week as a child with a lot more money, whose bag has five stickers, two superballs, a pencil, and 3 of those little parachute men...it would reveal class differences MUCH more than two batches of cupcakes, even if the higher-income kid's family bought the cupcakes and they were a little bit prettier or better tasting.
I'm just thinking back to elementary school birthday parties, where what was in your gift bag was THE thing people talked about, and I remember kids getting openly mocked for having "cheap" bags. I never once remember anyone getting made fun of for having cheap cupcakes. So if we were going to move to some kind of system to celebrate that wasn't basically equal for everyone, we'd have to do it in a way that didn't result in kids getting made fun of because their parents didn't have as much money. I suppose a spending limit per bag would work, but honestly, so many parents cheat those, and its not like teachers are going to ask for the receipt.
When I interned in a 3rd grade classroom two years ago as a graduation requirement, it amazed me how much the students were aware of who was "poor", and how being classified that way was SO devastating for the kids.
On the topic of the debate, I think the answer lies more in eliminating junk from school-sponsored events, rather than birthday celebrations. I mean, its a lot easier for a school to mandate that a teacher not pass out candy, and that schools have movie days or other non-food or healthy food rewards for holidays, than to regulate what parents do and/or how they celebrate a kids special day. For our holiday or reward days in school, we always got to pick a movie and the teacher made airpopped popcorn for everyone, served in little popcorn bags. Sure we had the holiday parties with lots of bad food choices, but my teachers always provided good food choices too...veggies with dips, fruit salads, juice/water, etc. It was up to US to make the good food choices (and I KNOW that it is possible at home to teach your kids good food choices...look at the SO MANY parents on this board whose children turn down sweet goods because they've "had too much sugar today" or who crave veggies because their parents are demonstrating good habits). So I think a better solution would be to ensure that the cupcakes are really TREATS, rather than the norm, and still allow birthday celebrations to include them.
Of course, my viewpoint would require that schools actually take action on the foods available in their lunchrooms, making it healthier, so our kids aren't surrounded by junk - but I feel that THAT change would have much more of an impact on child health than removing the cupcakes that come 2 times a month...
On the allergy issue, my future father in law is deathly allergic to tropical fruit. He can't even be near it without having a severe allergic reaction. Should we ban pineapple and mango from his workplace? He'd had the allergy since he was a kid, and he has learned to be VERY vigilant about it, from a VERY young age...and of course he carries an epi-pen EVERYWHERE. I personally am really negatively affected by aspartame...it makes me basically violently ill for hours after I have even a sip of a diet soda, which made restaurants particularly risky back when I still drank soda, as there was the constant fear that the cups got mixed up or what have you. But if I was out to dinner with friends, and I planned to order a coke, I wouldn't expect all of them to not order diet coke in case there was a mixup...I'd just ask the waitress (or in the classroom case, the other students) to be particularly vigilant about not exposing me.
I agree that its one thing to ask for alternate snacks on a flight due to a severe allergy than to ask a class to not pack any peanut products for an entire year. One is a one-time thing that will affect those people for the length of the flight, the other is a 9-month committment. And heaven help the mother whose 5 year old goes into a "I won't eat anything but pbjs" phase...