My 3-year-old niece, who can read letters but not words, read the letters on her car seat.
Niece: “W. A. R. N. I. N. G.”
Mom: “What does that spell?”
Niece: “Seat. Pink Seat.”
… later my niece was reading the word on my daughter’s bracelet.
Niece: “L. O. V. E.”
Daughter: “What does that spell?”