The earlier your child is exposed to books, the easier and more enjoyable the journey to reading will be. Choose bright, colorful books with simple, child-friendly text about subjects your child likes. Let your child choose the books she wants you to read, and be willing to read the same book as many days in a row as your child wishes. As you read, point to the text with your finger so she can begin to make the connection between sounds and letters.
Rhyming is fun, and teaches your child to listen for words with similar sounds. Read poems, rhyming stories, nursery rhymes and sing songs with your child. Play rhyming games in which one of you says a word and the other tries to find a word that rhymes with it. Speak to your child in rhyme: "I have a hunch you'd like some lunch!" or "hey you, dressed in blue, you found your shoe!"
Clap out the syllables of words to emphasize the rhythm of speech. This will introduce your child to the idea that some words have only one syllable while others have more. Have him clap as well so that he can feel the rhythm with his own hands. See if he can think on his own of words with only one clap, then two and finally three or more once he's secure with the concept.
Choose a letter of the day. Start with consonants that make only one sound, such as "B" or "D." Find as many words as you can to use with your child that start with your day's letter. See if she can think of any herself. Have fun with your letter of the day by using it to start each word in a familiar nursery rhyme, such as "binkle binkle bittle bar" instead of "twinkle twinkle little star." See how your child reacts. Try replacing only one of the sounds with the letter of the day and see if your child notices.
Change the first and last sounds of words to make your child aware of the importance of these sounds. Tell him that the "bat" is purring as it sleeps, and see what he says. If he corrects you and tells you that it is the "cat," say "oh, you mean the cab?" Make a game of it, and make it funny. It will draw your child's attention to how important the first and last sounds of words are to making those words understood.