Here is my favorite resource for teaching your young child the sounds the letters make, and how to write them!
Book 1 teaches short vowel sounds Book 2 teaches consonant blends Book 3 teaches the phonic units sh, th, wh, ch, ng, ck, tch, ee, ea, ai, ay, oa, and ow. Book 4 covers compound words, suffixes, syllable division rules, and 3-syllable words. Book 5 teaches the sound families: all, alk, old, olt, oll, ild, ind, thr, shr, scr, str, spr, spl, qu, -ey words, and the sounds of ed. Book 6 contains ar, or, er, ir, ur, wor, war, ea, ie, igh, oo, oi, oy, ou, ow, au, aw, ew, ui, ue, ou. Book 7 covers soft c and g, silent letters, ear, ph, ei, eigh. Book 8 teaches suffixes and endings.
If you feel your child needs a little more practice at a certain level, each level has a "1/2" book: 1 1/2, 2 1/2, etc. that provides more practice on the same concepts as the book before it So, if your child finishes Book 2 and isn't really confident with the concepts, let him do Book 2 1/2 and he'll be ready for Book 3.
I would recommend moving forward just as quickly as your child can handle it. (It never hurts to tape a dollar bill inside the cover as a motivation!) As soon as your child has gone through the primer books, and done a few pages in Book 1, he will be able to read a beginning phonetic book, like Decodable Little Books. Paperback, 78 pages per book. You'll love these!