Playing hangman can be a really great family activity, especially as kids start learning to spell. You can take turns deciding who picks the words and who guesses the letters. Both are good for young spellers.
According to Wikipedia, those who don’t like the concept of drawing a hanging man sometimes switch to drawing apples on a tree, then erasing them as guesses are missed.
There are online versions of hangman as well, but I really prefer the interactive side of playing it in person.