Right now your child is starting to learn what good readers do before reading. Encourage him or her to go on a picture walk (look at all the pictures and think about what the story may be about) before reading together.
We have also introduced the letters A-B. When you are riding together in the car, take turns thinking of words that begin with those letters.
At this age, knowing the sounds of our language is so important. Play rhyming games with your child, recite nursery rhymes, and read to him or her as often as possible. Ask your child what sounds he or she hears at the beginning, middle, and end of words. Make it as fun as possible.
I will post some specific game ideas in later updates.