What you need:
Vanilla Beans (I used Madagascar Bourbon Grade B from here)
Vodka (I used the cheapest stuff I could find)
Jars
I used 8 oz. of vanilla beans and 8 cups of vodka. You need 1 oz. of vanilla beans per 1 cup of vodka.
Slice your vanilla beans into 1/2" pieces.
I decided to put my vanilla extract into one quart mason jars. So I put 3 cups of vodka and 3 oz. of vanilla beans in two of my jars and the rest in the last jar. Then I shook them up real well!
The vanilla should keep indefinitely from what I've read. Supposedly you can also top off your jar of vanilla with some vodka to make it last longer. Wouldn't that dilute it a little? I'm not sure. Guess I'll have to try it and see.
Here's what it cost me. The vanilla beans were $16.23 (One pound is $32.45 including shipping and I split them with my sister-in-law) and the vodka was $12 for a total of $28.23. That's only 44 cents an ounce!! I dare say that is MUCH CHEAPER than Walmart!! Have fun!!
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