This is a great tool for teacher to use in developing phonological awareness/phonemic awareness. I suggest that you use Tub O'letters for this activity.
Students will recognize and use individual sounds (phonemes) to form words. The student will form the word, sound out phonemes, & read the word! These activities are great for group rotations, small groups, Tier and Tutorials.
I recommend that you run these activities in four different colors of card stock.