When you are out and about point out simple signs and ask your child what he/she thinks they mean. If he/she gets it wrong, remind him/her that its a good guess and ask him/her to keep guessing. Point out clues: There is a barber inside, so the sign says, Hair cuts.
Brainy Background: Talking about things beyond the here and now helps expose children to new vocabulary. Asking your child questions also helps develop reasoning skills, especially when the question requires more then a simple yes or no answer.