BirdFont is an Open Source font editor that lets you create vector graphics and export TTF, EOT & SVG fonts.
BirdFont enables you to easily start working on your font when you launch the program without complicating things with hard-to-follow tools. The interface is mapped out in a very functional way providing you with easy access to all the features needed to start the creative process.
The video below clearly illustrates how effortless the creation process can be.
Limitations:
The free version is almost 100% functional. Prices start at $5.00 and further provide you with commercial usage, color fonts, OpenType SVG, and OTF fonts (OpenType CFF).