Times are bad and my kids bord. Making inexpencive outdoor playtime fin in the sin!
for colored chalk, food coloring in plaster of paris. pour into candy or clay molds (or just little paper cups). plastic candy molds are pretty affordable at baking/cooking stores. Can also use them with modeling clay. In fact, your kids or their friends may have leftover molds from clay play sets.
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Get some sheetrock at the hardware store, usually you can find small portions for pretty cheap. Peal off the paper on both sides (it doesn't have to be perfect) and write away! This is what I did as a kid! Works great and only comes in white.
If you're lucky, there may be some rocks in the area that may work as chalk. Your kids probably already know where to find those.But as for an equivalent to store bought sidewalk chalk, I'm afraid it's much cheaper to buy it than make it. Head to the dollar store or the summer-toys section of your local department store. Here in Canada, I can easily find a small bucket of chalk for $1 and the most I've spotted it for is $5Anyway, if you're still determined to make some... here's a guide: http://familycrafts.about.com/cs/craftsupplies/ht/SidewalkChalk.htm