One of the most powerful ways to develop your child's literacy skills is also the easiest: talk to your kids! Your two-year-old can understand more words than he or she can express. When you talk with them, you can help them learn new words and find language to express their sometimes overwhelming emotions as they make sense of the world. At age two, kids are beginning to use simple spatial words (in, on), pronouns (you, me) and descriptive words (little, big). They may even start to speak in three-word sentences and answer basic questions.