Wild olive has a really fun idea for making a necklace with the kids. She uses empty spools has the kids tape on colorful thread and place on a beaded chain.
Good for ages 8 and up
Get the instructions here:
http://wildolive.blogspot.com/2011/10/make-mini-spool-necklace-with-kids.html
Tea rose home has a similar tutorial adding beads in between the spools.
Get the instructions here:
http://tearosehome.blogspot.com/2013/01/tutorial-mini-spool-necklace.html