When holding a pencil (or pen), the fingers should rest on the end of the pencil in a tripod grip (Index finger rests on the top, thumb on the bottom; both holding the pencil against the side of the middle finger, between the last knuckle and finger tip. See image below).
For pencils, fingers should remain on the paint and not on the wood.
Hold pens 1 inch back from the tip. Holding the instrument too close to the tip will cause cramping, and block the view of the image area; causing your child to not be able to see what they are writing.
Holding the instrument too far away from the tip will make it harder to control, easier to drop, and produce less consistent strokes. (See image above.)
Fingers should be in a relaxed, gently arching position, while maintaining control of the writing instrument. Bending the fingers at sharp, or right-angle positions will tire the hand muscles quicker, lead to fatigue, and increase the writer’s stress level. (See image above.)
Keep up the good work! You're doing great!