In the Yellow level of the Musical Rainbow program the children start to learn the rhythms and how to make notes. I start with three simple rhythms, TA (the quarter note), TEE TEE, (two eighth notes connected together) and the rest. Similar to the Montessori method of learning letters by drawing them in sand, I like to have the children physically make these simple rhythms with popsicle sticks. Then after wards they can more easily recognize them on paper.
It is very important to physically touch the notes/sticks as they say the words of the songs, or chant the rhythms. First touch and point. Next, clap the rhythms. Doing this will ingrain these basic rhythms over time so that they will more easily be able to read music notation as they get older.