Toys, Books, etc.
Buy toys and books at rummage sales. Kids don't seem to mind that the items aren't brand-new.

Save plastic lids off containers such as detergent, instant coffee, etc. (ones large enough not to be a choking hazard).  They can be used as a variety of toys; stacking/nesting, teach colours, counting etc. -- Evelyn 

Instead of buying new toys, exchange a box of your toys with a box of your friend's or neighbor's toys.  If you have a lot of toys, but them into storage and rotate them each week.   

Check out Book Closeouts for inexpensive board books for baby. 

The best toy bargains are found after Christmas, hitting rock bottom around mid-January.  Watch Target's clearance closely and stock up on gifts for the coming year.

1000 Best Baby Bargains