Kids love to move these letters around. There are so many ways to teach with magnetic letters.
You can organize your letters in a 24 compartment storage box. I found mine in the automotive department at Walmart. You might find some in the craft area too. The following pictures show how I have my letters organized.
I love to use magnetic letters to teach sounding out rules and to introduce words that will be in a book about to be read by a child. The next videos are examples of ways to use magnetic letters to teach reading.