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Balls
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Both cats and dogs are into round toys that can be thrown, rolled or batted. For cats, crumple up a piece of aluminum foil or paper, and toss it to get them started. Most cats will enjoy batting it around, especially on a hard surface where it will make some noise. For dogs, a regular tennis ball is a great fetch toy. Make-and-build-dog-stuff also suggests wrapping duct tape or masking tape tightly around a wad of newspaper into a ball.
Ropes and Strings
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For cats, you can easily make items for them to bat in the air, for example tying a length of elastic string to a feather or a pom-pom, and hanging it on a doorknob. Or, you can make an interactive toy by tying a long piece of fabric to a stick or dowel, and dragging it around. You an sprinkle these items with catnip to make them more appealing. Dogs would enjoy a tug toy made of knotted rope, or even a long, knotted sock. It is not a good idea, however, to give a dog a shoe as a tug or chew toy. He will not be able to distinguish between shoes that are "toys" and shoes that are to be left alone!
Smart Toys
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"Smart" toys are toys that help get your pet to think a little while he plays. The best example of this would be a toy that your dog or cat must roll, or bat, in order to get food out of it. You can make a home version by cutting a hole in the side of a plastic water bottle and filling it with kibble.
RealOwner.com tells of the fun idea of filling a bucket with water and putting apples in it for your dog to go bobbing. Another smart toy for a cat would be a small, closed, cardboard box into which you've cut round holes (just a little larger than a ping pong ball) on all four sides. Put one, or several, ping pong balls into the box and see if your cat can figure out how to remove them through the holes. Even if she cannot, she'll enjoy batting them around the box.
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Homemade Pet Toys & Treats
Pet supply companies have made a lucrative business over the years by selling fancy pet toys to consumers. Pets do need toys to keep them active and entertained, help prevent weight gain and to keep them from chewing your shoes, or batting your objets d'art. But it isn't necessary to spend a fortune to entertain your dog or cat. A few simple, household objects, and a little creativity will keep you and your pet busy for quite awhile without breaking the bank.