This activity might be a bit above the beginning preschooler, but I thought I would share it. The project actually came about because I am trying to help my youngest with sight words. He can sound the words out, but still does not have them down by sight.
Yesterday I had my daughter sit down and write out all the words she could think of in different word families. These are words with common endings: -an, -ad, -et, -in, -at, -it, -up, -ed, -op, -ar, -en, and-id, etc. It's amazing how many words you can actually come up with, and I'm sure we probably missed a few.
Next I got a large piece of poster board and started some cutting. I made 12, 3x5 cards out of it and 12 long strips measuring 1 1/2 inches wide. On each card I wrote one of the word endings. Then on a strip I wrote letters to make words with that ending. I then cut slits in the cards at the beginning so that the strip could slide in and move up and down. As the strip moves it makes different words. It is a bit time consuming, with lots of cutting, and in my case, measuring. I'm always trying to make things equal up, but I thought they came out neat and they were fun and easy to use.