As much as I like fireworks, I do not like having the ground fireworks or sparklers around small children. As a way to keep things still fun, but safe, I purchase LOTS of glow sticks that are the bracelet size. I then hand out glow sticks in the evenings. My boys have decided that glow sticks in a circle make a great nighttime Frisbee. They will put bracelets on and then play hide and seek in the dark. They have also played that they hide the glow stick for someone else to find (kind of I spy). Regardless, they are still having fun and are being safe. And we take in enough public firework shows to keep everyone happy.
Have a great, safe 4th of July.