I'm awed by the creativity of so many people. I am anxious to try out some ideas from these great websites for making crafts inexpensively:
Dollar Store Crafts Blog -- Amazing things to do with cheap potholders, pots, colanders, glasses, and so much much more! You can choose to look for crafts at price points for $1, $5 and $10.
Old days Old ways Blog -- A variety of thrifty crafty endeavors, with projects focused on dollar store items, some of which can be repurposed for 18" dolls like American Girl dolls. She has patterns for making baby doll hats, messenger bag and shoes, and even doll clothes from underwear.
Obsessively Stitching Blog -- Also has tutorials on using dollar store items, thrift store clothes, or hand-me-downs to repurpose clothes for dolls, as well as a million other things for use around the house, or for wearing.
Doll Clothes Patterns web site -- Some free patterns for clothes for 18" dolls like American Girl dolls, including a hobo purse, headband, and making a rag scarf from old t-shirts.
And speaking of recycling t-shirts....did you know you can make knock-offs of expensive modern necklaces using old t-shirts at this Dollar Store Crafts blog post?