It all starts in the same place, and that is learning the correct placement of your body, gaining strength and flexibility. By its very nature, dance makes children use their brains and learn in many ways, through many senses. Kids first hear the instructions, see the teacher demonstrate, then do it themselves until they know how the right way feels. They learn to move in time to music, to memorize the routine, to relate their bodies to the world around without, literally, stepping on too many toes, and how to concentrate on their own parts while a group dances around them. Put all these accomplishments together, and the dancer also develops a good foundation for healthy self-esteem.
Kids come out of their shells, their self-confidence really builds up.
Dance, especially the performance aspect, makes life much easier, especially for those inclined to timidity. A lot of teachers don't give the little ones enough credit for what they can learn. In my classes, we hop around and do all the fun stuff, but they learn all five positions too, with their French names. And they love it. Janice Carbone, teacher at the Studio of Dance and Drama, incorporates simple classical ballet in her preschool classes to give students a good base.