I've made the home-made silly putty before in one of my college chemistry labs (I have a degree in Materials Science). Most Organic Chemistry courses teach students how to make silly putty because it teaches them about polymers.
The home-made stuff isn't as good as the real Silly Putty. The home-made stuff is stiffer and more rubbery than Silly Putty, it doesn't stick as well Silly Putty, and it doesn't last as long (perhaps months for the homemade stuff versus decades for real Silly Putty). I didn't do an extensive comparison test involving the two putties, but based on my limited experience with the home-made putty (couple of days), I'd give it a 4/10 rating, versus 9/10 rating for the real Silly Putty. The real Silly Putty sticks better, is more shapeable, is more stretchable (it can be stretched paper-thin, whereas the homemade stuff can't), and it lasts much longer than the homemade stuff.
When I paint kits, I use the real putty because it's easier to use. Technically, the putty I use is a less expensive, copycat version called "Fun Putty" or "Wow-O Putty" (I can't remember the actual name) that only costs $1 per "egg". Five "eggs" (=$5) has lasted me years (I only build about five kits per year, plus I only use it in small, tight areas). You might be able to find some of the copycat putties at Walmart or at a dollar store. I like saving money like everybody else, but I haven't found the need to be super cheap and make my own silly putty when my cheap, copycat silly putty works great (I'd give it a 9/10 rating as well).
It's probably possible to make better versions of the homemade silly putty with different ingredients, but I haven't tried it.
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