Well I can think of four possible problems.
First, you don't exhale air (more on that in a sec) so the molecular weight is probably off.
Second, I would bet weighing the balloon isn't a great way to determine the amount of air inside, because the gas pushes in all directions, not just down into the balance. (Another way to put this: the balance measures weight, not mass - in most cases this isn't an issue because the primary force acting on the weighed mass is downward, but this isn't the case in a balloon). If your calculation uses a much smaller amount of gas in the balloon than there actually is, your calculated volume will be much smaller than actual.
Third, the pressure inside the balloon is higher than atmospheric pressure because of the tension in the balloon. We know this: it takes work to blow up the balloon; if the pressure were the same as atmospheric... well, you get the idea. I tried to find out what the pressure inside a party balloon actually is... seems to be on the order of 1.1 atm, or 10% higher than atmospheric. If the pressure is higher on the inside than your assumption, the calculated volume will be less even if the ideal gas assumption holds.
Finally, are we sure the ideal gas assumption holds? Your breath contains a lot of water, which is frequently not ideal, especially under higher pressure situations.
Do those issues add up to a factor of 10? I'm guessing the balance issue is the biggest one. At STP, a mole of gas is about 22.4 liters. If we estimate that your filled balloon has 1 L of gas in it, and we assume standard conditions, then that's ~0.044 moles of gas, almost exactly 10 times more than you are calculating by your balance. Check!
The experiment isn't a bust though - a good class activity may be to brainstorm for reasons the experiment did not work in this case.