Here's a game you can make using sets of those Dollar Store magnetic letters!
Make a set of index cards with 3-letter words such as CAT, DOG, RUN, HOP, GET, etc.
1. Children pick one card to "fill".
2. Children toss a penny. Heads = get a letter, Tails = lose a letter.
3. When a child gets a Head, they pick a matching letter from the bucket to put on their card. If they get Tails, they have to put a letter back.
4. First child to fill up their card Wins!
Later on, switch the group of cards they can choose from to 4-letter words, then on to 5-letter words near the end of the year when their reading skills have improved!