This was one of my favorite childhood DIY toys. This is very simple to make and children will play happily for hours with this. I am not sure, in this age of Kinect and Playstation, whether children even care about making their own toys or not :).
This is one of the common DIY toys in India, it might be the same elsewhere too! Do put a comment, you had played with this one in your childhood!
IMPORTANT NOTE: As matchsticks contain hazardous chemicals, please make sure to take proper care of kids if they are making one of these. I have pasted a sheet of paper as a layer on top of the matchbox to avoid any such direct contact but I strictly advice parents' guidance.