Using strong string, hang a balloon from the ceiling of a cleared room. It should be long enough to reach your hands.
Have your group stand or sit in a circle around the balloon and hit it to one another.
You can do this to music for a little more fun.
This game can go on for ages and promotes laughter and giggles as the balloon bounces all around.
Objective: Exercise, Improve hand and eye coordination along with socialization
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This seems like something that will definitely get little kids laughing and having a great time.