1. To increase your childs vocabulary, simply read to them! Reading aloud with children is known to be the single most important activity for building the knowledge and skills they will eventually require for learning to read.
2. Teach them to recognize and name the letters of the alphabet.
3. Talk about books & text (which is the front of the book and which is the back and which way to turn the pages of a book, that a group of letters make a word. Ask questions about the story, talk about the pictures. Make books with your child. Let them dictate their stories to you, then type them out onto the computer, staple and make into a book. Let them draw pictures for the story. Keep these books on your bookshelf and read them together frequently.
4. Introduce matching games such as Picture Lotto or other pre-reading games. Spend time playing with Magnetic Alphabet Letters [see My First Three Letter Words & My First Alphabet Lotto in reading games]
5. Awareness of phonetics (the speech sounds that correspond to individual letters and later blending letters and digraphs)
Steps for Reading Success begin way before your child can actually talk. You can lay a strong foundation by simply reading, singing, talking and playing auditory games with your child such as rhyming. All my children enjoyed attending music lessons especially for pre-schoolers. See if there is one in your area and sign up.