In school art teachers can teach kids to make crafts with the stuff which is easily available around us and it costs almost nothing. For example they can make pinwheels out of construction paper, pencils and stick pins. Kids can create flowers using tissue paper and pipe.
Useful links:
* Frugal Crafts and Recipes for Kids
* Frugal Crafts For Kids at 'Frugal mommy living.info.'
* 'thrifty Thursday- frugal crafts for kids'
* 10 Fun and Frugal Gift Ideas