If you are game to let your kids loose on your iPhone, these are some of the best applications around to help them learn to read, write and draw.

ABC Animals (education)
ABC Animals is a cute application that will help your children learn their alphabet and phonics with the help of friendly animals. The app is an interactive teaching tool; the interactive flash cards help your kids recognize, pronounce and write all the letters of the alphabet on their own. Your children will be begging you to let them trace and write their own letters on your iPhone in no time. ABC Animals also incorporates French, German and Spanish languages so you can teach your child a second (or third) language at the same time.
Price: $1.99

Cute Math (education)
Cute Math helps your kids learn to love addition, subtraction and problem solving from a young age. The app helps young kids count by letting them pick apples off a tree and putting them into a basket or moving birds from one place to another to help them problem solve. Cute Math turns Math into a fun, interactive, visual game. Cute animations and animals (and basic math problems) amass in this app for kids under six.
Price: $1.99

TeachMe: Toddler (education)
TeachMe: Toddler is not as bright and colorful as some of the other kids' learning apps, but it will provide your kid with hours of entertainment (and learning). TeachMe: Toddler is made up of six different subjects: letters, abc phonics, numbers, shapes, colors and counting. Parents can configure the app to suit their children's learning level in most of the subjects and can review their child's progress in each subject with the review performance history feature. As the child progresses through a level with correct answers, he or she is rewarded with “stickers” that can be stuck on the included backgrounds or coins that can be exchanged for rewards.
Price: $0.99

KidCalc 7-in-1 Math Fun (Including New Birthday Party Theme) (education)
KidCalc 7-in-1 Math Fun is a great all-in one learning app that is great for teaching your children math concepts like addition, division, subtraction and and multiplication. One of the best features is the ability to easily configure the difficulty settings –- making the app appeal to children in pre-school right up into elementary school. The application is constantly updated with new content and user-suggested improvements, giving you more “bang for your buck.”
Price: $0.99

Preschool Adventure (education)
Preschool Adventure takes your kids on a journey through colors, numbers, shapes, body parts, matching and sounds. The six activities are full of interactive fun for your preschool-aged children. The activities are simple and are not heavy on content but will surely provide you and your child with more than $0.99 worth of entertainment.
Price: $0.99