Hoops and scarves are super props to foster creativity for dance and expression with toddlers. Check this out:

I like to use the Edwin Gordon method of teaching rhythm to young folks. We use short syllables to match the beats.  Such as Du-da-di for a 3/4 time signature. Here is a video of one of my 7-year old students playing a simple piece from a Bach minuet. There are quarter notes, half notes, and dotted half notes in this piece. Adapted from Bach's Minuet in G major. She is singing the rhythm "du - di" etc.