Make reading a fun activity that you can do together. Take time everyday to have both you and your child each sit down with something to read. She can read her book and you can read a book, a magazine or even something for work, as long as the two of you are both engaged in the content you are reading.
Ask your child questions about books he reads. If he has multiple books by the same author, ask him to compare and contrast the different books. Question him on the differences between the main characters, the plot lines and what he thinks about each book. This will stimulate his mind and teach him how to understand how to differentiate between different books.
Teach your child to differentiate between stories that are fact and opinion. Read both types of stories together and ask her to tell you which ones are fact and which are opinion. She needs to be able to tell the difference between the two, and this exercise will teach her how to do that. It will also teach her to be able to differentiate between fiction and nonfiction.
Play word games with your child, such as scrabble and hangman. This will help him to be able to match a word with its definition, and to be able to spell it. He can use this knowledge when he's reading, as he will not be able to comprehend a story if he does not understand the words in it.