This past Saturday we took the kids to the Kids' Workshop at Home Depot. It was so much fun, and it was free! There were about 6 or 7 different wooden projects that the kids would choose from. My girls each chose a valentine holder, and my son chose a sailboat. They provide kid-sized Home Depot aprons and any tools and paint that you need. There doesn't appear to be an age limit, and they didn't ask how old my youngest was (she's 4). My DH said he noticed kids as young as 2. Parents help with everything, of course. When the kids are all done, they get a special pin to put on their apron with a little picture of the project they completed. We saw kids whose aprons were covered with project pins!
Home Depot offers this once a month. If it sounds fun to you, check out the date and time for the HD in your area.