These are a smidge less healthy than the traditional Cheerio bracelet, but definitely more fun.
Yesterday, in the midst of turning ourselves into cupcakes, we smeared the outside of some Cheerios with plain white icing (powdered sugar and water), and then rolled them in cake sprinkles. The effect was a plate full of teeny, tiny sprinkled donuts!
After they had dried for about an hour, I let M string them onto a pipe cleaner for a bracelet. I really liked using the pipe cleaner; it was stiff enough to thread well, and the fuzziness kept the Cheerios from falling off.