Would it be financially smart to go all out for a a 1 year olds birthday party?

I’m thinking a small get together, with one cupcake for him to taste and a”Word Party” theme where Myself, my sister and parents wear Word Party shirts and a few decorations will be enough. I see so many people throw lavish parties for their child’s first birthday. I have even seen a few parents dress their kids in designer outfits but I never understood it because It’s not like they’re gonna remember any of it.

Would it be financially smart to go all out for a a 1 year olds birthday party?
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