Bicycling with children in the urban environment

A StreetsWiki article talks about why it is a good idea to teach children how to bicycle safely in an urban environment and then goes on to discuss in detail ideas and strategy for teaching children to deal with different situations:
There are a number of very good reasons to bicycle with children in the city. Children are naturally curious and bicycling is an excellent way to explore the urban environment. Bicycling expands the child's universe beyond the immediate vicinity of their home and school, and exposes them to the people and places between home, school, and other destinations. Through bicycling, children learn to read and use maps, navigate traffic, and interact with pedestrians and motorists. Bicycling is also good exercise that is easier to fit into a busy schedule when used for the dual purpose of transportation. Instead of purchasing large vehicles such as SUVs that pollute and detract from our cities while sealing children off from their natural and social environment, parents can bicycle with their children and make transportation an engaging, educational, health-promoting family experience.

Bicycling with children initiates so-called "virtuous cycles" that further promote bicycling. Parents who bicycle with their children may be encouraged to bicycle more often because of their children's enthusiasm for bicycling. Adults bicycling with children tend to zealously guard their children's safety, becoming potent advocates on the road and with government for improving bicycling safety. Motorists tend to drive less aggressively when they are aware of children bicycling nearby. Children who bicycle regularly will be more likely to bicycle as adults. In all of these ways, urban bicycling with children promotes bicycling and bicycling safety generally.
More, including details about handling different situations here.