I have had the same problem with the kids in this neighborhood, and finally had to put my foot down. Please just remember it isn't usually the kids fault.....comes from actually wanting to play and be in a place where they know someone is watching and they feel safe. Also, in a place that has boundaries....
Anyway, if you want to stay on your neighbor's good side, the best thing to do is to go over and just explain that you run your own business from home which means you need to keep things running smoothly. Which accounts for all kids out of the house by 8pm to get your kids ready for bed, and why no kids in the house during the day while you are working.
That way no one gets their feelings hurt, you don't go bankrupt feeding and entertaining all the neighborhood kids, and you manage to put down some rules that will get you some peace....
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