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I believe the pencil thing is an urban myth. (Don't need graphite dust all over the place.)
One doesn't fund this sort of thing for financial benefit one does it "because it is there". It is a challenge to be overcome. If one does not expand into the rest of the universe when one can who is to say the Earth's resources won't become insufficient to make a start and the human race gets stuck here ?
As for the cost, as a lump sum I'm sure it look awful, but as a contribution from each individual I suspect it'd be negligible and already much more spent on other things.
I'm unsure when it'll happen but it saddens me that I was born into a space age only to find those able to achieve seem not to want to do anything spectacular any more. Anyway I'm sure a few years back someone called Robert Zubrin had the outline of a plan that could work already. 'Mars Direct', or something like that.
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