Download and print free patterns from Amy Butler Designs to make your own quilts, pillows, and other homemade items.  You can download and print as many patterns as you like. 
I just discovered this site that has tons of cute craft ideas you can do with the kids on the cheap.  Very inventive ideas that use things around the house and turn them into adorable crafts like the plastic lid ladybugs shown here.  Thanks, Crafts By Amanda!
If you have an infant or young daughter and are anything like me you probably have headbands and hair accessories EVERYwhere.  I was checking out and saw some neat headband holders... that were selling for $20-$40 each!  Yikes.  So I decided to make my own.  The materials from A.C. Moore cost me $8 (I already had the paint, brushes, and stencils).  If you plan on doing this check the local paper.  Both A.C. Moore and Michael's always have coupons in the paper, often for 50% off one item.