I'm a big fan of using recycled materials for craft projects with kids. It teaches them at a young age to think outside the box and find uses for things that might otherwise simply get discarded.
For this craft, we used toilet paper rolls and various scraps of paper to make owls. The kids had a hoot decorating the owls however they liked. At first I was a little nervous they wouldn't be seen as owls to anyone but our family, but once we put on some googly eyes and orange beaks, each creatures' owl-ness was unmistakable. And I'll even go so far as saying they are really cute...(especially when you consider they are made from trash).