Black Dog Publishing's well-loved Making Stuff: An Alternative Craft Book was a hit so they've followed it up with a version for the younger set - things for them to make and things for you to make them (if the heart should prompt).
Color photos as well as instructional illustrations guide one through a slew of projects, divided by age, including felting puppets, homemade playdough, sewing a tutu, making pinatas, constructing a kaleidoscope, potato printing - lots of favorites from your childhood as well as some new ideas like making wall decals from contact paper. For adults, projects include making hats, booties, bibs and costumes.
Even if you don't consider yourself "crafty," it's about having fun, learning new things, staying away from the tv and enjoying time with your kids.
You can find Making Stuff for Kids at your local bookstore or library or online here (the original Making Stuff is available here.)