Encouraging creativity in children is easy, and creativity itself is a trait that can translate into a lot of great emotional bonuses as well.

According to studies (and quoted from WikiAnswers):

It has been proven that children are very creative for the reason that they think recursively. To give an example of how a recursive thinker thinks, For instance, if you would ask two people how to put a giraffe in a car, they would probably tell you to open the door and put it in. now if you ask them how to place an elephant in the car, a person who is not a recursive thinker would probably say open the door and put it in. The one who is would probably say take out the giraffe and put in the elephant, because such a thinker can link one situation to a previous one. This linking to different situations is the essence of creativity.

• Fostering that creative growth isn’t difficult, especially in younger children.  Encouraging creative play by letting your child play with and decorate cardboard boxes of different sized can push imagination further. Letting them use their own minds and creations, you may be surprised with what they can come up with.
• Another amazing item? Sidewalk chalk. Even if you don’t have an accessible area for the chalk, simply by laying down some large poster board or even butcher’s paper, your child can have a lot of fun drawing and creating . If chalk isn’t for you (or the mess is too much to think about) you can also substitute the more traditional crayons.