This year my daughter has been working her way through a spelling development program called Words Their Way. If you are not familiar with Words Their Way I highly suggest you check it out. It is an awesome program for helping kids work on their phonics, vocabulary, and spelling in a way that goes further than just memorization. This game of Word Families Lego Sort is one of the many activities that we do to work on her Words Their Way weekly spelling list.
When children sort words in games such as this they are engaged in the process of searching, analyzing, comparing, and contrasting. These problem solving skills help teach children how to form generalizations that can be applied when they come across new words that they may not know.