Use whatever you have around your home to make the story come alive. The shepherd took the sheep to eat grass (green towel) - each night he counted the sheep (Fisher Price animals)as they went into sheepfold (fence from a playset) - one sheep was missing so the shepherd went to look and found it in a bush (made from sticks stuck in a piece of styrofoam with tissue paper green leaves).
Color one side of a sheet of white construction paper brown for dirt. Color both sides of another piece of white construction paper blue to represent water and then cut in half to form two 4 ¼” x 11” pieces. These two pieces are taped to the brown sheet.
At the place in the story when the wind began to blow and blow and blow until the water piled up and up and up - the child lifts back the 2 strips of blue paper and then march the Israelites (Little People figures or any people you want to use)through the path to the other side.
Create mountains on both sides, because the Israelites were trapped with the Red Sea in front of them and mountains on both sides and the Egyptians behind them.
The children's song "What Seems Impossible" is perfect for this lesson (from the newly released album DANCING IN THE DESERT by Mary Rice Hopkins.