Party Favors for Kids

Clay Favors
With some bakeable clay and an oven, you can have both a fun activity, and party favors to go home with the kids! They cane make just about anything. This recipe from divinerecipes.com will give you dough:
2 cups plain flour
1 cup salt
1 to 1-1/2 cups cold water
2 tablespoons cooking oil
If desired, food coloring to color.
Bake at 300 degrees for about an hour (until hard). The kids can also paint whatever they make after it's baked. This is a great way to occupy the kids and encourage creativity.

Origami
With a little bit of patience and some squares of colored paper, the kids can make some simple origami sculptures to take home with them. You might want to practice yourself before teaching a bunch of kids how to do it though! An origami box can be a fun way to serve candy, too. http://www.origami-instructions.com/origami-box.html.

Water Guns
For a summer party, head to your local dollar store and buy up enough water guns for all the kids. Play a game with them like cops and robbers or tag, where the water can tag a player. When they go home after the party, they can take the water guns with them.

Wax Lips
Remember this blast from the past? They're still available on some websites! Kids are sure to get a kick out of them and they'll be kind to your wallet too. At http://www.oldtimecandy.com/wax-lips.htm they only cost $17.99 for 24, or 79 cents a piece. The same website also has wax bottles for sale.

Kool-Aid Art
For this, raid thrift shops, dollar stores, and yard sales for small glass bottles. Buy a few different flavors (colors) of large kool-aid containters, and make sand-art with kool-aid! Any kool-aid left over can be used as refreshment, too. Instructions can be found at http://crafts.kaboose.com/kool-aid-art-bottles.html.