Summarize:

Place newspaper or paper towel along the bottom of the cage to catch droppings and make for easier clean up. Cages with grates placed a few inches above the bottom of the cage to prevent birds from accessing their waste are recommended.  Change the lining every other day.  Avoid using cat litter, sand, wood shavings, or other materials in the bottom of the bird cage. Most pet stores sell dishes that will hang from the side of the cage and are made for a bird to perch on. These allow for easy refills and may be more convenient than placing a bowl on the bottom of the cage. You can also use a water bottle in place of or in addition to a water dish. Birds have many opportunities to bathe in the wild, so be sure to provide them with an opportunity to bathe in their cage. Choose a short, heavy, sturdy bowl, fill it with lukewarm water, and place it on the floor of the cage. Alternatively, you can purchase a bird bath that hangs from the side of the cage to prevent moisture from gathering on the floor of the cage. Birds need perches and will spend a lot of their time enjoying them. Provide your bird with perches of different heights, contours, and textures, and place them at varying heights within the cage. For example, place a thick wooden perch horizontally in the cage as well as a thin rope perch positioned at an angle. Toys are essential for your cage, as they provide your bird with stimulation and keep them from becoming bored. Good toys for your bird include mirrors, ladders, swings and bells. You can also put wooden, plastic, or rope toys in the cage for your bird to play with and chew on. Wash your bird’s toys often with mild soap and warm water. Rinse them thoroughly and allow them to air dry completely before returning them to the cage. Dangerous toys include toys made from dyed leather and those with “S” hooks or small, removable parts that might be swallowed. "Jingle” style bells are also unsafe because your bird’s toes or beak can become trapped in the openings. Avoid overloading the cage with toys. Rotate them out regularly instead so they keep your bird’s interest.
Line the bottom of the bird cage. Place food and water bowls in the cage. Add a bird bath. Include perches for your bird. Put safe toys in the cage. Avoid dangerous toys.