Read to your child. Read stories during the day and at night before bed. Even very small children enjoy this activity. Some parents begin reading to their child while he is still in the womb. Your child's interest in the written word will be sparked early on if he is exposed frequently. Create a comfortable reading space, such as a corner of your child's room that contains a stack of books and a chair. During the day, read to your child in this space so that he knows that the space is a designated reading area. Before long, he will think of reading when he sees the area.
Once your child begins to talk, start teaching her the alphabet. Work on letter recognition and pronunciation of each letter's sound. Purchase alphabet flash cards that show letters and related objects, such as the letter A next to an apple. Practice a few letters with your child daily. The attention span of young children is very short, so set a goal of about 10 minutes each day.
Once your child learns the alphabet, work on teaching him concrete words. Start with simple words, words that he uses often. Make your own flash cards that list words such as dog, cat, mom and mouse. Work on letter/word recognition and pronunciation of the words. Vary the words in your list every week, but include some review words as well. Label your child's toys or toy bins. Explain to your child the meaning of the labels. If he is constantly in contact with words, he is more likely to learn them.
Buy beginner reading books and read them aloud to your child. Sit close to her and point to each word as you say it. Ask your child to read a page or two with you. Once she gets accustomed to word recognition and sentence flow, she may be confident enough to try reading the book on her own. Don't be afraid to reread your child's favorite books as it's easier to keep her interested if you are reading something that she really appreciates.