I can't remember where I saw these pencils but I thought that they were really cute and I knew girls would enjoy making them. Whenever I put a bunch of the cut up labels on our dining room table they get right to work making colorful pencils.
Here is what you need:
unsharpened, number 2 pencils
white 4x6 labels
exacto knife, ruler and cutting surface or a scissors
First cut strips that are 1 1/8 inch wide from the labels with an exacto knife and ruler (you can do 3 or 4 sheets at a time just make sure you press down hard). You can also use a scissors.
Use magic markers to color them in. You can put some glitter glue on them to make them sparkly.
When the label has been completed remove the backing and line it up with the bottom of the metal piece that holds the eraser. Then just wrap it around the pencil. When you sharpen the it the little bit of yellow left on the bottom will disappear.