Review the letters of the alphabet with your child using a puzzle or chart that features the complete alphabet. Go over each letter and practice what the letter sounds like phonetically. Have your child think of some words that begin with the sound of each letter (e.g., "grape" for "G," "elephant" for "E," etc.). Having a strong grasp of the alphabet and knowing how each letter sounds will make it easier for your child to learn to read words.
Read through a beginner-level children's book with your child. Ask your child to sound out each word as well as possible, and offer help if you can tell they are struggling with a word. Have your child read the same book several times over a period of a few weeks until reading the book all the way through becomes easy for the child.
Read to your child on a daily basis. Ask your child to sit next to you while you read. Put your finger underneath each word as you read it, so that your child can see the word and hear how it is pronounced. Reading in this manner will expose your child to a wide vocabulary and promote a high level of interest in reading overall.
Use reading flashcards to teach your child how to read individual words. Reading cards feature a picture of an object, such as a cat or an apple, along with the word spelled out. Go through each card one by one with your child and ask her to identify what is shown in each picture. If she correctly identifies the picture, praise her, and then point to the word and repeat it. For example, if the picture is of a cat and your child correctly tells you so, say something like "You're right, good job! Cat. C-A-T. Cat." You can find reading flashcards at many department and teaching supply stores.
Get your child excited about reading. If your child already loves to hear a good story or has a favorite book, tell her that once she learns how to read she can read the book whenever she wants. Explain to her that she will be able to learn about many different topics, such as dinosaurs, outerspace and princesses. Praise your child and tell her how well her reading progress is going and how "cool" reading is. You can visit your local library and have your child pick out books that she wants to read. Showing her the endless number of stories available to her once she can read should inspire and motivate her to continue learning.