The basic tools in Animal Crossing are as follows:

Axe		use to cut down trees
Fishing Rod		Catch fish in the ocean and river
Net		Catch bugs and creepy crawlies
Shovel		use to dig up stuff, plant stuff and hit rocks for bells
Slingshot		use to shoot down balloons which randomly float over town, and to shoot down Gulliver
Watering Can		use to water flowers

You need a Fountain to get the Silver and Golden Axes. To get a Fountain, donate enough bells to your town for a town upgrade.

Throw an Axe into the fountain to summon Serena. Answer her questions correctly to get the Silver Axe.

Benefits: Never breaks

Throw an Axe into the fountain to summon Serena. Answer her questions correctly to get the Golden Axe.

Benefits: Never breaks and chops down trees faster

The Silver Fishing Rod will randomly show up in Nook's Shop.

Benefits: the silver fishing rod's lure is more attractive to fish, so it is easier to catch them.

Catch every fish in the game, and then you will receive the Golden Fishing Rod.

Benefits: very attractive to fish - a fish magnet!

The Silver Insect Net will randomly show up in Nook's Shop.

Benefits: the silver net has a bigger net than usual, making it easier to catch bugs.

Catch every bug in the game, and then you will receive the Golden Insect Net.

Benefits: very easy to catch bugs.

Get from the Resetti Surveillance Center, which may be open in the city randomly after 8pm.

Benefits: Chance of getting 10% more bells when hitting Bell Rocks.

Note: Once you get it, you can not go back again.

You will need two Shovels. Bury one Shovel and leave it underground overnight. Dig it up the next day and it will be a Golden Shovel.

Benefits: Can grow money trees. Plant a bag of bells, and a tree will grow. There is a chance that it will be a money tree. The chance of a money tree growing is equal to how many bells are buried (e.g. 99,000=99%, 50,000=50%, etc.)

The Silver Slingshot will randomly show up in Nook's Shop.

Benefits: fires two bullets instead of one.

After shooting down 8 Balloons, the Golden Slingshot will randomly appear attached to balloons you see after that.

Benefits: fires three bullets, making it very easy to shoot down balloons.

Buy 50 bags of seed from Nook, and you will receive the Silver Watering Can in the mail from Posy Farms.

Benefits: Will bring a wilted Red Turnip back to life.

Maintain a Perfect Town for 15 days, then speak to Pelly at the Town Hall and she will give you the Golden Watering Can.

Benefits: Can get Gold Roses - get a Black Rose from cross-breeding Red Roses, then let it wilt. Water it with the Golden Watering Can and it will be gold the next day.