Woodworking with Children
Hand Tools and Projects for Kids
I don't have children so let me get that out of the way right now. I usually avoid topics like this so as not to appear the hypocrite. However I do have extensive experience teaching woodworking classes to kids from pre-school to 8th grade both in schools and during my time at The Steppingstone Museum so I thought I could answer this question posed by one of my Patrons.
In short, find a project that interests the child and their focus and ability to take instruction will be greatly improved. Second you might be surprised at what tools are safe for a child. I personally found the drawknife to be incredible safe despite its appearance. Second would be a coping or fret saw. Japanese saws are easier to use for children but I do find them low on the safety scale and you need to exercise caution because they are so sharp.