Here's how it worked out
I attached the thin boards behind the peg board and then secured it to the wall.
Then I cut the bamboo kabob sticks down the the proper length and hot glued them into the peg holes. You need to space your sticks out so that each spool has room. I used a pattern of every other hole and every other line. I tried to illustrate it in the above photo.
Now I can see all my colors and won't end up buying the same colors for each project!
Peg board 4x8 sheet $8.00
Wood 24" by 1/2" thick $1.37
Kabob Sticks $4.00 a package.
Total for project $13.37. I am LOVING that!