I found one of these storage drawer containers at Goodwill a few years back and turned it into a letter drawer. We've sorted and stored magnetic letters and letter tiles, but right now it is filled with letter stickers.
Last week the 3 year olds used them in their journals. They looked for letters in their names, and then asked how to spell other words.
My favorite: "Teacher Sheryl, how do you spell 'I love Mommy'?"
Just another fun idea for your literacy center!