If you have never taken your kids to one of the Kids Workshops at Home Depot, you really need to change that. These wonderful program provide young children with a chance to build a real wood project all on their own. Or with minimal help from an adult or older sibling. Even better, they are totally free.
Today I took Katie, Kieran and Liam and they all built their own pencil holders. When you show up alone with 3 kids, they even send over one of the folks who works at the store to help out which is rather nice. The projects are easy enough for these three kids to honestly do them on their own with a little guidance and some help every so often pulling out nails that went in crooked. We have taken younger kids but they require a bit more help so unless both parents are going, we tend to stick with the 5 and up crew. I believe the workshops are aimed at kids from ages 5 to 10 or so but I've never seen them turn away a child who was slightly older or younger. Everyone had a blast and is looking forward to going again next month.