You can make some amazing things just using nature (sticks/twigs, flowers, leaves etc) as a base (that can be collected for free). My favorite at the moment is hole punching leaves – you can collect different shapes and colours. You then can use the hole punched leaves and all the little punched holes to make collages, paint etc
Get an old cardboard box and fill it with the cardboard rolls from toilet paper and paper towels, tissue boxes, clean/dry milk cartons; cheap crayons and pens from a $2 shop (they also have a great range of colouring book for under $5) and your child will be as happy as!
We have a creation station. Which is different boxes we can pull out that has different craft items and projects. One is colouring in where we brought a crayons set (pens, pencils, crayons, textas and stamps) and colouring books on sale. Then another box is for card making where we brought the items online for a few dollars (it has cards, embellishments, stamps and punches). The next is a playdoh box which we make coloured, glittered and scented playdoh and it has all the tools in it that were given to her at birthdays and Christmas. The last is our rock decorating box that has white rocks paints, pens and pencils which we decorate and then hide in the parks for other children to find.
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