Write down the names of things you use at home on index cards and point out the objects to the child. Pronounce the word, then let the child see you spell it out on the card. Also mention the meaning of the words if the child is old enough to understand. For example, you can explain to your child that a map is a thing that has the countries of the world on it.
Read to your children. As you read to them, they're becoming active participants in the reading process. When you come across important words, tell them the meanings, spell the words out and pronounce them two or three times. Also ask the children what they think the story is about. This also teaches critical thinking skills, which will help the children as adults.
Point out images in everyday life. When you approach a traffic light, talk to your child about what each color means and spell out the colors of the lights. Mention that when you see a red light, you can't cross the street because you need to let the cars pass, and when you see a green light, you can cross. When your child sees a restaurant menu, point out the names of certain foods and pronounce them for him.