How do you help develop your children as it pertains to leadership?

By giving them these "Lil' Troops"

A reading list is a great idea, but I would add a little twist and get them to give me a short synopsis on the books so I know they read them and understand them. I like hands-on training the best, though. Put them in situations where they have to make decisions (I would steer clear of life/limb/eyesight for now). The more chances they have to make decisions (and mistakes) the more they will learn how consequences affect them and others. A great example would be to give them a task, have them select the tool/method to complete the task and then inspect it when its finished to see how they did. Obviously, you would want to be around to advise just as a good senior NCO does with his subordinate leaders.

Great question. I have two teenage boys with one getting ready to go to college in the fall. I'm working on getting both to help out more around the house especially with outdoor chores. Just showed my youngest son how to properly operate the riding lawn mower and two weeks ago I showed both of them how to change the brakes on the truck. One issue my wife and I are having though is they both love to play video games especially their PS3. Rather than allow them to play constantly, i encourage my youngest to read more. I've given him quite a few books plus told him he can read anything he wants from my bookshelves.