Point out words that are familiar to your children as you read to them. For example, if your children can recognize a certain word, point out that word in a book. If your children recognize letters, ask them to find all of the words that being with a certain letter.
Include reading readiness activities in daily activities with your children. Sing the alphabet song, play with letter magnets or find different objects that begin with a certain letter.
Read signs that you see as you go on errands, particularly if the signs contain words that are familiar to your children. This sort of repetition will help children connect the certain arrangement of letters in a word with the way the word sounds. Point out common sounds in the signs that you see. For example, explain how the word "stop" on a stop sign and the word "store" on a storefront sign start with the same sound.