The huge PYSSLA beads jar from IKEA is used a lot by my kids. They like to arrange and give away different pictures.
The point is not to advertize IKEA but to turn your attention to an incredible product for 6 to 12-year-olds. Many people see them as simple beads for stringing together and have no idea of all the great stuff that can be made with them. The price is good, too, for the number of beads in the jar. Pegboards are sold separately.
It might be a little hard at first bit after children get the knack of putting the beads on, their fingers become incredibly nimble.
And, by the way, a great activity for developing fine motor skills!
After the beads have been arranged in a certain shape, iron them on (special sheets are provided but baking paper works just as well). The heat will fuse them together to make a durable plastic figure you can use as a key-holder, earrings or as a small gift.