I made the sight words into laminated cards on coloured paper, then made up some extra words such as names of DD, her friends, words like beach, school, hat, dog, cat etc on white paper with a picture below the word. Then we used a combination of the sight words and extra words to make up sentences/stories. She would make up some for me to read and vice versa. I noticed a big improvement once we started doing that. It helped her to put them into context and see that they can be useful for her to write stories.
PS she's in Prep (Qld)
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