Yes it does! Most of our church's kids are infants and toddlers, so I won't be giving them pencils! LOLOL I used to make goody bags for my daughter's entire class every holiday when she was in grade school, and there would be a holiday pencil and eraser in there with the candy. I used to stock up, that is why I have an over-abundance of pencils that I decided to list on here! :-)