Hi Eels and Marilyn! Welcome to the thread. Dina already gave you great advice.
I store mine in a pencil holder I made. I used 1" PVC pipe and cut them to around 2" tall and made a wooden box to put them in. Some people use toilet paper tubes.
One other thing about buying pencils.... check Ebay. I don't buy sets unless they are really cheap but I have found great deals there.