I did this for awhile at my last school. The first term it was super, second
term not quite as super, but still good. I had a lot of old watercolor paint
containers left from a different teacher. I was told this is what she did.
She would have the students bring at least two pencils and a small eraser. I
did the same and put their name on a thin label and put it on the side of
the paint container. They put their pencils and erasers in the box and I put
the containers in a 3² recycled soda box, with the period on the box. When
the period began I would take out the box, the students would pick up their
pencil box, use it and return it to the recycled soda box during clean up.
Worked great and they always had a pencil.