Most villages had a gathering place at the center of town. People often came here to play games, to drink, to work on chores, or tell stories. Some played games such as skittles, which is like modern bowling. Occasionally, actors might come to town and put on plays and dramas. People also met here to enjoy holidays. They celebrated more holidays than we do today. Most Christian church holidays were celebrated with elaborate rituals and feasts where peasants got to each much better food than they usually ate. This food was provided by the Church and the nobility.
Drinking was also high on the list. That did cost a few pence, but it was also possible to ferment your own alcohol (it’s as easy as falling off a log) or distill the harder stuff (only a little bit more difficult and time-consuming than leaving your bowl of wet barley mash to ferment for a few weeks then drinking the juice, a/k/a beer).
Sex was always popular. It didn’t cost anything (if done with your spouse, not a prostitute) and, it had the bonus of frequently producing additional, miniature workers for your farmstead, a/k/a children.
Stories and jokes had been around since hunter-gatherer days. Again, it cost nothing, if you provided your own, or listened to those of your companions (at home, or at the tavern).
Music and dance are also as old as humanity itself. The peasantry could not afford to pay professional musicians, other than tossing a coin or so to a street performer or a pass-the-hat tavern entertainer, but, plenty of people knew how to dance and sing, and enough people knew how to play instruments, to have a jolly good time, in what little leisure time they had (agriculture was much harder and more time-consuming than the old hunting-and-gathering life).
Hunting and fishing were great fun, if you like that sort of thing (as many did, and still do). Yes, it was to gather food, but was also something people did for enjoyment.
Decorative arts were applied to clothing, housing, religiously symbolic objects, etc. not just for practical use but for aesthetics. Embroidery, pottery, basketweaving, carpentry, leatherwork, woodcarving, were common skills, often with division of labor by sex.
Sports, including martial arts, whether in the form of tournaments to see who was the best at some physical skill like running, log-tossing, or stick-fighting, or team events, kicking a stuffed leather ball around, are both as old as the hills, too. Fun for both participants and spectators.
Festivals were both opportunities for economic exchange (bringing your products to market, buying other people’s products) but included street performers, etc. to keep the gathered masses entertained. They usually only came a few times a year, though, and only lasted a few days.
And, there was always religion. Weekly church services and other church-sponsored events were social gatherings where friends met; they were learned lectures from visiting prelates and monks; they were opportunities to view great art; and they were places to participate in soothing rituals designed to be pleasing to the eye, ear, nose, and spirit, what with all the fancy vestments and golden accessories, incense, and choral music.
There wasn’t much reading going on; few other than the aristocracy and the clergy could read, and books were insanely expensive, all being copied laboriously by hand.