My simple list of tools. I found the mini party lights at a retailer online. The dowel I found at Wal-Mart. It's the same width as the lights. I used my dremel tool and my hot glue gun. From there, it's how you want to decorate the wand. Whether that's paint or other materials is up to you.
I first used the dremel with a sanding/filing bit to open up a hole just wide enough and deep enough for the loop part of the light. (Trial and error to get the right depth.)
Once it's big enough, I used hot glue to seat the light into the end of the dowel.
I checked to make sure it would light properly.
I used some scrap material to give it texture which I painted black. I then got "fancy" and used some scrap leather to wrap the handle section.
Ta Da! A light up wand. Took me about 2 hours total to do.