*like Americans ;-)
Step 1: Materials and tools.
If you are going to add a scale, you will also need a piece of white card, clear sticky-tape and a narrow marker (an OHP pen is good).
Step 2: Make It.
There are three ways to make the hole:
Drill really carefully: use a small sharp blade to drill a perfectly circular hole, stopping frequently to try the tube through it. When you can just get the tube through, stop drilling.
Drill quickly: use whatever tool you have handy - pocketknife, scissors, particle-beam accelerator - and then seal any gaps between the hole and the tube with blu-tac, modelling clay or hot-glue.
Melt it: heat a narrow nail in a flame (hold the nail with pliers or you'll burn yourself), and poke a hole in the middle of the lid. Quickly push the tube through the hole and, as the plastic cools, it will set and make an air-tight seal around the tube.
Did you push the tube too far through before you sealed it, and now you can't close the lid? Never mind, just snip the bottom of the tube off, no big deal.
Step 3: Fill it.
Be careful, because the water can easily squirt out the top of the tube.
You should end up with the coloured water part-way up the tube with plenty of free space above it.