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For your kid birthday, party hats for everyone makes a festive occasion. You can make all kinds of paper hats ahead of time and then let the kids choose one to decorate. Have stickers, crayons, markers, feathers, glitter, and glue around for decoration. If you have an outside table to do this activity on, you can relax a bit about the mess and let the kids enjoy themselves.
You might have a few hats pre-decorated to give them some ideas or in case someone's hat gets damaged during the decorating. Paper firefighter hats, rabbit ears, and crowns can be adapted to fit just about any party theme. Or just make a variety of different hats and don't worry about a theme. Even a first birthday can be celebrated with hats, although you might want to skip the decorating step!