We present the design, evolution and analysis of "Hapkit", a low-cost, open-source kinesthetic haptic device for use in educational applications. Hapkit was developed in 2013 based on the design of the Stanford Haptic Paddle, with the goal of decreasing cost and increasing accessibility for educational applications, including online teaching, K-12 school use, and college dynamic systems and control courses. In order to develop Hapkit for these purposes, we tested a variety of transmission, actuation, and structural materials. Hapkit 3.0, the latest version, uses a capstan drive, inexpensive DC motor, and 3-D printed structural materials. A frequency-domain system identification method was used to characterize Hapkit dynamics across the various designs. This method was validated using a first principles parameter measurement and a transient response analysis. This characterization shows that Hapkit 3.0 has lower damping and Coulomb friction than previous designs. We also performed a user study demonstrating that Hapkit 3.0 improves discrimination of virtual stiffness compared to previous designs. The design evolution of Hapkit resulted in a low-cost, high-performance device appropriate for open-source dissemination and educational applications.