I have heard of good free font creating tools like Birdfont and Fontforge but I would like to know if there is any one that supports multi colored fonts. I know transtype by fontlab supports this but price is out of my budget for now especially since I'm just doing this for the fun of it.
I know Fontself (which I haven't tried yet but really looks awesome) will soon include this feature.
While not free it is still less expensive than Transtype and allows you to directly make fonts within Illustrator - which is its main purpose, in fact it is an Illustrator plugin.
However I don't now any totally free software which can do this...