For less than a dollar and using common kitchen equipment, you can make a moisturizing lotion with only oil, water, and emulsifying wax.  After all, lotion that you buy contains mostly water.

Skin care lotion is nothing more than an emulsion of oil and water. As
an introduction to this wonderful and useful craft, try making this simple
12 fl oz batch of lotion.

Tools
• 1-cup glass measuring cup
• 2-cup glass measuring cup
• saucepan just large enough to fit the 1-cup measurer

Ingredients
• 1/4 cup olive oil
• 1 1/4 cup water
• 1/4 cup emulsifying wax, available at some craft stores or online.

Directions
• Fill a small saucepan with water and set it on medium low to use as a water bath.
• Combine the oil and e. wax into the heatproof 1-cup measurer and melt the mixture in the water bath.
• Fill the 2-cup measurer with  water and heat it in the microwave on
  high for 2 minutes or until it boils. Alternatively, boil water on the
  stove and pour it into the measurer.
• When the oil/wax mixture has melted, pour it into the water. Your lotion should now have the consistency of skim milk.
• Let it cool slightly, stir with a spoon or chopstick and pour the
  lotion into a bottle while it’s still warm and pourable. Otherwise, it
  would be hard to get the lotion into its container. If you’re using a
  wide mouth jar, then this is not an issue.
• Leave the cap off to let it cool completely, but occasionally cap
  the lotion and give it a quick shake to help blend the mixture.

That’s IT!!!

As is, this plain, scent-free lotion is great for babies and people
with sensitive skin.  But this recipe is very forgiving and you can
easily vary it.  Here are some suggestions:

• Substitute 1/4 to 1/2 cup of the water with glycerin to make a hydrating lotion.
• Substitute or combine the olive oil with other oils such as almond oil or jojoba oil
• Add essential oils. Use 1 - 5 drops per fl oz of lotion

For more information, view the original post on Wabi Sabi Baby blog.