Sitting in their bird cages all day long, your pet bird needs something to keep it entertained. You need to have more than one bird toy on hand, in fact you'll need several of them. Birds can quickly become bored, which can lead to behavior problems. You will probably end up spending more on a constant supply of bird toys than you will on bird food.
Parrots like macaws and cockatoos are particularly partial to wooden bird toys. They love to chew and will thoroughly enjoy gnawing your new bird toy down to pieces. If you want to make your own wooden bird toy, be careful not to use pressure-treated wood. Stuffed bird toys should never be left in the cage with your bird unattended. Short playtimes are fine, but birds will eventually pick out the filling and create a choking hazard.
The bird cage itself can be a big bird toy, if you make sure to get one that has horizontal bars at least part way around the sides. Your pet bird will love climbing around on the inside of its cage. A bird bath isn't really a toy, but can still be lots of fun especially during hot weather. Any gently sloping, shallow dish can be used for a bird bath or you can even invest in fancy heated bird bath. Larger birds like to splash around when they get the chance.
Thick pieces of cotton rope can be tied inside the bird cage, to provide climbing and swinging fun. Watch that it doesn't get too frayed. Small strands of thread can get tangled in bird toes. Plastic bird toys will definitely last longer than the wooden ones, but might not be as much fun for the bird. Then again, plastic is more colorful and brighter than wood. It's all about providing variety for your pet bird.