Older kids enjoy things like ball and jacks sets, yo yos, weird pencils, crayons, comic books, big suckers, bubble gum, little cans of modeling clay, jupm ropes, etc. In other words anything goes.
If your party has a theme, find something that fits the theme. For example, we had a "bug" party for our daughter and gave out bug catchers. Water guns are a good favor for a water party. It is also fun to make the favors at the party. You could decorate picture frames or frost cookies to take home.
Bubbles are always a hit, as are crayons, markers, Play-Doh, balloons and candy. Many party supply stores have favors that go along with character-themed plates and napkins. Children also enjoy making a craft that becomes their favor. For instance, you could have all the children paint a terra cotta pot and plant flower seeds for an all-in-one craft/favor.
