Choose a story, an age-appropriate legend or a personal story from your experience, for example. Pick one that is related to another theme you are teaching or one that you feel would interest your child.
Sit down with the child and tell him your story. Use props to enhance the telling. Act out parts of the story and use strong facial expressions and motions to convey feelings.
Give the child a sheet of paper and ask him to write down a few words of his choice from your story. Help him spell the words if necessary.
Ask the child to read each word he has written and discuss its meaning. Help students sound out the word by pointing out the sounds of each letter. Allowing the child to choose his own words to write down based on your oral story and then reading them teaches him to make the connection between the spoken word and the written word. (See Reference 2)
Give the child markers or colored pencils and ask him to illustrate his reading words. This will serve as a reminder of their meaning when the child reviews his work.
Start a reading word binder and include the words the child chose from your story. Repeat this lesson with a new story each day, and allow the child to choose new words for his reading binder.