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Development of Self-esteem
Self-esteem is budding in early childhood and its growth or unfolding forms the foundation for how a child feels about himself and such things as his value, worth and importance. Because young children are just beginning to gain a sense self as individuals, the early childhood period is a critical time to support the development of healthy self-esteem. Young children typically enjoy art activities and gain satisfaction from participating in a variety of different kinds of art. Some of this satisfaction comes from having control over of what they do with the art media. Making something by themselves and being proud of their creation goes a long ways in supporting good self-esteem. Children also learn about themselves when their art is praised or criticized by teachers, parents and other children.

Art Knowledge and Interest
Art has many facets and young children are capable of participating in all areas of art that are presented at a basic foundational level. They are receptive to learning about different kinds of early art, such as pictograms and petroglyphs, and learning about famous artists. It is especially helpful to provide young children with opportunities to imitate the art that they are learning by creating such things as pictograms and petroglyphs. If a lesson is about Van Gough, for example, letting the children make sunflowers out of clay, paint, sand and paper supports functional learning. Listening to what young children say about art is an effective method for planning other art experiences to catch their interest and enhance their art knowledge.

Read more : http://www.ehow.com/list_6591579_benefits-early-childhood-art.html
By Mary Johnson-Gerard, Ph.D., 

Art and Brain Development
With advances in medical technology over the past decade, developmental specialists have come to understand how the brains of young children grow and develop. Providing children with opportunities to be creative while playing is the cornerstone of developmentally appropriate practice. Art is an avenue to guide young children toward creativity and healthy brain development. Experimenting by “playing” with different art media and art activities offers a young child’s brain the opportunity to strengthen neural pathways that produce growth in the areas of creativity, imagination, sensory integration and fine motor skillls. The ability of young children to tell about or describe their art, enhances their language and social emotional development.