Chinchillas are adorable, gentle animals and need quite a bit of care. If they were handled since birth, they will be tame and docile. They make a great pet but are delicate so should be handled gently.^[1]

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[edit] Steps

Provide a suitable home. Chinchillas should be kept in cages. Since they are extremely active, make sure you buy a large cage (3x3x3 is suggested).

Make sure the cage has multiple levels so they can climb and jump and have fun. Some cages have a wire bottom, and this is not preferred, as it is best for them to stand on a solid floor. A cage with a floor that is part wire and part solid would be acceptable.
Make sure the cage bars aren't so far apart that the chinchilla can stick his head through them. If his head fits through the bars, his whole body will fit through them and he will escape.
Cover the bottom of the cage with high quality bedding. They also need a hiding space so they can feel safe and secure.

Provide healthy bedding. Never use cedar or pine shavings as bedding, as the phenols are very strong and cause serious respiratory, skin, coat and liver problems. Try to only use Kiln dried shavings or Carefresh.
Lift your chinchilla like you would lift a kitten. Slide your hand under the chinchilla's belly and place your other hand on top of the chinchilla. Use the hand under the chin to support its hind legs and bum so it feels secure. Don't hold the chinchilla too tightly but do remember that they can be squirmy, so you need to hold them firmly.
Provide good quality hay. Your chinchilla should always have a supply of timothy hay or second cut local (you can feed them small amounts of alfalfa, but not to much because it could cause foaming at the mouth).
Only feed your chinchilla Chinchilla Pellets. Don't buy the kind of food with little treats in it.
Feed them only infrequent snacks of dried fruit or nuts, but make sure that they are unsalted.
Refill the drinking water daily. The algae that grows in their water can cause liver problems, severe diarrhea, or kill them.
Remove soiled hay and bedding from the cage every day.
Wash the cage with hot water. It is generally suggested that you use no soap or chemicals, but if you mix a tiny amount of bleach with the hot water and swish it around the cage's plastic pan and then clean it thoroughly with hot water and then let it air dry, it is a good way to kill most of the bacteria that can harm your chinchilla.
Give your chinchilla a dust bath for 10-15 minutes anywhere from daily to twice a week. Too much will cause dryness. but too little will cause their coats to build up oils which can cause a disfiguring and deadly fungus to grow on their skin.
Provide exercise. Chinchillas need at least an hour a day out of the cage for supervised play time. They are very active animals and will not be happy if they don't get their play time. It should be in a small room and the room should be chinchilla proof. Remove everything that could cause harm to your chinchilla.
Give them something to chew on for dental health. Chinchillas' teeth can grow up to 12 inches a year! It is essential to purchase a special block of wood or pumice stone for your chinchilla to chew on.
Be gentle. Chinchillas are very delicate and cannot stand rough treatment, such as dropping them or squeezing to hard.
Keep them cool. Chinchillas overheat easily. Buy a chill slab (available at pet stores) to freeze and let your chinchilla cool down on. Remember, they do originate in the cold Andes mountains.

[edit] Tips

Purchase a chinchilla care guide at your local pet store.
Small bits of dry apple, carrot,and raisins are great treats if in small quantities. Fresh fruits and vegetables are not suitable.
Make sure the chinchilla has something to chew on like a chew block, which may be purchased at a pet store.
Chinchillas can have the same toys as rabbits, but they cannot be made of plastic!
Chinchillas get lonely if they are by themselves.
Newspaper and aspen bedding are good for the bottom of the cage.
Chinchillas are usually very friendly but shouldn't be over-handled.
Chinchillas can live to be 20 years of age.
Chinchillas hate to be put on their back.

[edit] Warnings

Never feed chinchillas human food.
Keep plastic away from chinchilla cages; ingesting plastic can cause sickness and/or death.
Chinchillas like to run around free, but they tend to chew on wires, get stuck under furniture, get eaten or killed by pets. Chinchilla-proof your home but do not get a chinchilla ball. They can cause chinchillas to over-heat and die. They can also get too humid and cause breathing problems.
Do not hold chinchillas by the middle or end of their tail as you may break it, but you can hold them by the BASE of the tail while supporting them with your other hand.
Chinchillas are loud and are nocturnal.
Chinchillas are high maintenance and are very expensive to care for.
You cannot train a chinchilla, and you may stress them to dangerous levels if you attempt to teach them a trick.
To a chinchilla, everything is edible, so make sure nothing dangerous is in reach.
Chinchilla and children can be a good mix if you teach your child the correct way to hold and pet a chinchilla.
Chinchillas cannot survive temperatures over 75 degrees or below 50 degrees.

[edit] Things You'll Need

Chinchilla
Chinchilla care guide
Large cage (at least 3 feet X 2 feet X 2 feet)
Chinchilla food
Chinchilla sand/sand bath
A small marble slab that's been frozen so the chins can cool down
Timothy hay
A quiet area for the cage
Chew toy (like a chinchilla chew from a pet store. No plastic)
Other toys such as things that hang/dangle (Wood and rope bird toys are fabulous!)