To protect little hands from sharp edges, cover can's sharp, inner rim with tape. Note: This is a task for adults to complete.
Tightly wrap yarn around the can, taping the start and finish of the string of yarn to the can. Consider leaving some of the can's bottom without yarn to decorate with tissue paper.
Wrap and tape tissue paper around the bottom of your can. Leave enough room to write a name on of the tissue paper section.
Write your name on the tissue paper (or someone else's if your pencil holder is a gift). Now fill your pencil holder with all your favorite utensils!
Notes
The cans' inner rim (where the lid was removed) can be sharp. To dull the inner rim, we wrapped it with a couple layers of tape.