The short version is that children need hands-on activities that build motor skills and self confidence. Woodworking requires thought organization, making decisions, and solving problems. These are skills needed for success as an adult.
Young children can be taught safe and effective ways to use tools and build with wood. I’ve been doing it since 1974. My teaching philosophy is to provide safety rules, guidelines and supervision. I believe your hands are linked inseparably to your self image and when you can bring something in your mind to a tangible form that invariably develops confidence and self-respect.