My DS6 loved to spell starting at about 2.5. He would say things like "d-o-g" spells dog or "b-a-t" spells bat. That would sometimes evolve into us asking him to spell 3 or 4 letter words, and later longer words. He just loved to spell things. He didn't start sounding out words reading, though, until he was 4, and didn't start reading easy readers until he was 4.5. He still loves spelling and often asks me to make up spelling lists for him on the weekend! BTW: He's reading now at about a 3rd grade level and learned both by phonics (in the very beginning) and by whole word (very quickly after the first couple months).
