I think that this could be cute with vocabulary and the students could only fill in a square if they knew the meaning of the word. And maybe each box could be a little harder so one would be the definition, one would be use in a sentence, etc. Just a thought...
I pinned this the other day. This one works better. First they trace the sight word (we call them star words), then they take colored pencils and "rainbow write inside the word", and finally they cut out the individual letters and glue them in the box in the correct order.
Practice writing sight words by spinning to get a word and a color, then writing in that color. I have also seen Rainbow Spelling in which the spelling list is given in big letters and the students' homework is to trace the words over and over in different colors so that it becomes a rainbow.