A model volcano is a great frugal project either for fun or for science class.
I don't know a kid who would pass up the opportunity to make an erupting volcano. Here is a general list of supplies you'll need and basic instructions for how to create a erupting paper mache volcano.
But no two volcano's are alike and once you have these simple supplies on hand you can let the kids imaginations take over.
To make the volcano you will need:
Plenty of Newspaper
An empty bottle - 20oz or smaller is a good size for a first volcano.
Cut the box sides down to about 1-2 inches high so that the box looks more like a tray. This will keep the lava from spilling over and making a mess.
Tape your clean, dry bottle to the center of the cardboard "tray".
Use strips of cardboard to form a crude frame coming from the mouth of the bottle down to the tray to form the base of the volcano. Use masking tape to hold it in place. (The video below will show this.)
Use crumpled and rolled newspaper to fill in the volcano and give it shape. Tape everything to hold it down.
Once your volcano has the shape you want, start layering your strips of paper mache. Make sure you cap the bottle so that nothing drips inside.
Take your time and make sure you let each layer of your paper mache volcano dry completely (overnight to up to 24 hours) before applying the next layer.
Once it's dry the volcano can be painted and decorated.
To erupt the volcano pour warm water in the bottle to a little over 3/4 of the way full. (Have an extra bottle handy to play with the eruption process so you can tweak it to your liking before you do it in your volcano).
Add several drops of dish liquid, and food color to give you that red-ish, orange-y lava. Carefully spoon in about 3 Tbs of baking soda.
When you're ready to see the lava flow pour in vinegar. You should see an immediate reaction.