Back when I was in college my group was required to make a vehicle powered only by a rubber band. This was the design that was chosen for our group. We ended up beating the rest of the class and won a small prize. These can also be made by using a plastic cup so the rubber bands are visible.
This would make a great toy for most kids and it is easy to make. Also the needed parts are commonly found household items so the cost should be minimal at most.
This would also be a great project for the classroom by having the kids build and race these vehicles across the floor.
This is a great toy for kids.
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