This phonics flip book idea from Kids Activities Blog is so neat! You cut the index card notepad into thirds. In the first section, you put consonants. In the middle, you write vowels and vowel combinations. In the last section you write the consonants again. (You can also add any blends, chunks, or digraphs that you are working on.)
We had a great time flipping through and making real words and silly words for each other to sound out. I left blank cards at the end of the book to add more later, but B took it upon himself to rip those out and write his own letters. The next thing I knew, all of the papers were ripped out and in a pile and he was using them in a different way. =)
I love this idea for beginning readers. It was inexpensive and easy to make!