It is essential for their eye and hand coordination. That's why in day care centres and kindergarten there is a lot of hands on activity. Examples: making things out of playdough, painting, threading objects onto string to make necklaces, drawing and tracing, building things with blocks/duplo, cutting and pasting or and making castles in the sandpit.

It is not only useful, it is quite essential. Movement of the hand in children becomes movement of the brain tn adults. Children who make lots of things with their hands become quick thinkers when they are grown up.

I think it builds confidence in ones self to be able to make something by hand and a lot of children need self-confidence, so I think it is very useful for children to hand make things.