My little Guy is very familiar with the concept of sewing with most of the women in his life being sewists. A great activity for little kids to do is threading cards - he calls it his sewing. It's very good for their hand eye co ordination and other brain related development. You can purchase pre made cards but my Mum decided to make some for Guy using the letters from his name (he is also in the process of learning his letters).
Mum printed out the letters and laminated them then just punched holes with a hole punch. You can use shoe laces or wool with a bit of sticky tape around the end.