Toys
While toys are a part of a child's life, at least here in the United States, it's important to remember two things: 1.) toys should not be substitues for interaction with adults and 2.) toys need not be expensive. Toy manufacturers and marketing agencies would have you believe otherwise, but just look at a child celebrating their first birthday or first major holiday - what fascinates them most is the wrapping paper and the box the toy came in!
Having said that, here's a link to a web page that lists several toys recommended during a child's first year: http://toys.about.com/od/toysbyage/tp/birth12months.htm. Here you'll find a reasonable list; feel free to make homemade substitutes which may be a better deal for you and your little one!
Here's a link to developmentally appropriate toys for children aged 1-3 years: http://toys.about.com/od/toysbyage/f/faqtoddlers.htm?p=1 Remember, if your child returns to a toy you think s/he has outgrown, please allow her/him to play with it. Children learn much from "just playing" and unbeknownst to caregivers, they may still need to master a particular skill, or they may enjoy the comfort they associate with a toy from younger days.