my kid (now 10) started going to the course with me a couple of years ago and before that - just plastic balls and stuff in the yard.
Now, it's a prerequisite we stop on the way to the course to get a slushy/Sprite. Then when at the course he gets a trip to the snack bar to take a snack with him. After that is he good to go. I don't know why that gives him so much joy, but its how I make it fun for him. He likes to use the laser yardage gun too, and tell me theyardage (50% of the time its wrong).
the only technical thing I tell him to do is to lineup properly, maintain his foot position and use his shoulders and arms to swing - not his hands. Here's current progress:
https://drive.google.com/file/d/0B96PqlluKCyTaENUYXJTbXlkQ0E/view?usp=sharingThe only other thing to be concerned with is equipment - make sure the clubs are the right size. If you cut down adult clubs, the weighting is so off it causes early problems and frustration. Too long/too short = more problems (as you would also have if you tried clubs too short/ too long). Don't make it unnecessarily difficult based on equipment selection - the game is already too hard and if they get too frustrated early it will be a shame. Set them up for success with somehow making it fun and getting them in the right position to be successful.
One other thing we like to do when practicing is that there is this mounded area with a 12x12 metal grate at the bottom, in between some mounds that surround it, creating a decent size bowl effect at the practice area. We get 20 or so yards from it and see who can chip it "in" first (ball ends up on the grate). The size of the grate and the bowl effect allows him to make a bunch of shots, rather than him trying to do it on a regular size golf hole, so he feels like he is accomplishing something. Each ball will usually rest itself in one of the square holes in the grate and if one of us gets 3 balls in a row up, down or diagonal, the other person gets $5.