Your colored pencil beads can be used just as you would any other bead in your stash. I love to combine them with glass beads, since I think that glass and wood work well together. They look nice strung on any type of cording, and unless you often hike in downpours, there’s no need to seal the cut wood edges of the beads.
Children especially like to craft with colored pencil beads. My daughters wear their colored pencil bead necklaces strung on elastic cording, with matching bracelets. I also gave colored pencil bead kits to my tween girl cousins for Christmas, containing twelve colors of colored pencil beads, sorted by color, and a good length of invisible elastic cording.
They were all wearing matching colored pencil necklaces and bracelets by the time we sat down to Christmas dinner.