Puppets
Let kids make finger puppets designed after the Three Little Pigs and the Big Bad Wolf. Using felt and glue, make a series of U-shaped sleeves that can be slipped over little fingers. Toddlers can then color the finger puppets with markers to make them look like pigs and wolves (it doesn't matter if their drawing doesn't look perfect). They can use the finger puppets to reenact the story you read, or create new adventures with the characters.
Houses
Kids can use sheets of construction paper to make the three houses the pigs build in the story. Kids can draw a straw house, a house made of sticks and a brick house. Ask your toddler which pig built each house, and applaud and congratulate him when he points to the correct house.
Tracing
Write words associated with the story on a sheet of paper, like "House," "Pig," "Wolf" and "Blow." Give toddlers a pencil or crayon and help them trace over the words, guiding their hand. This is a good activity for pre-schoolers just learning to shape letters and words.
Acting Out
In the story, the Big Bad Wolf is famous for blowing down the pigs' homes, saying the catchphrase "I'll huff, and I'll puff, and I'll blow your house down." See how closely toddlers remember the story by repeating the phrase and asking, "What does the wolf do?" Encourage them to blow as hard as they can, imitating the wolf's actions.