I've just started using tools with my 2 year old. We found an old set of shelves during the annual kerbside collection for large items. We've put it on it's side and have been converting it inot a long shelf for all of her things.
We started of with sanding down some edges. Traditional sanding blocks are too big for her hands, instead we wrapped a bit of sand paper around a branch block, or what some call a tree chip.
Then we pried off some of the extra moldings around the bottom with a hammer and chisel (I hold the chisel as it's razor sharp) while Gwen hits with the hammer.Then we salvaged a few extra screws and de-nailed the moldings.
Yesterday we bought the wood to add extra shelves and together we chose some paint to colour the shelves before we screw them in.
I love seeing her become so involved in something so real world, using skills that I too am only really learning for the first time.