STEP 1
Make a block. Have fun. (To make your own block, we have a tutorial.)
STEP 2:
Cover each of the six sides with brightly colored paper.
STEP 3:
Write six different letters, one on each side of the block. Use letters that look different from each other. (See Alphabet Hotel link for examples of letters to begin with.)
After they know their letters and associated sounds, they are ready to put letters together.
STEP 4:
Make specific word family blocks. Write endings like "at" on a piece of paper that will go to the right of the block once it is rolled. Here are some letters that can go on the block for the "at"-ending word family: or "ar" or "op".
at -- b, c, r, h, m, f, p, s, or anything else that works
ar -- c, b, f, j, p, t, w
op -- t, h, p, b, c, l, m
it -- s, b, f, h, k, l, m, p, w, z
And so on. You can make all sorts of word families.
STEP 5: Roll and play. Discover the words you can make.