Make a trail of Big Bird's footsteps up your driveway with sidewalk chalk. Make your own Sesame Street sign using yellow and green foam board. Use white letters to spell out Sesame Street, and white numbers to put on the 123. Make lots of letters and numbers from construction paper and scatter them around the party space. If you have foam or magnetic letters, use them as well. Choose red, yellow and green for streamers and other decorations. Use all the Sesame Street toys you already own as table toppers and centerpieces. Make a banner that says "Welcome to Sesame Street!" and hang it on the front door.
Goldfish crackers are a hit with most children, and they pay homage to Elmo's favorite pet, his goldfish Dorothy! Make sandwiches and cut them into various shapes with cookie cutters. Make some circles, squares, triangles, etc. Serve mini pigs in a blanket and call them Twiddle Bug hot dogs. Serve cookies in honor of everyone's favorite monster, Cookie Monster! Bake a batch of cupcakes, and decorate them to look like Elmo. Frost them with white frosting, and cover it with red sprinkles.Use an orange jelly bean for the nose, and mini marshmallows for the eyes. Bake two round cakes, and decorate them to look like your childs favorite Sesame Street characters. Frost one red and decorate it to look like Elmo. Choose blue for Cookie Monster or Grover, green for Oscar, etc.