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When setting the ball, kids should start with both hands hovering right over their forehead. The thumbs and pointer fingers should form a triangle and the palms should face outward. The elbows should be out to the side in a wide position, which will provide leverage to push the ball. They will then push their hands upward to set the ball. The key is for the hands to make contact with the ball when it is right at their foreheads and for all 10 fingers to touch the ball. They can toss the ball up to themselves and catch it right above their forehead with their hands in the setting position. Their fingers should wrap around the ball. This will help them get used to the setting position. This drill can be done seated so that kids don't worry about foot placement. You can divide the kids into pairs. One child can toss the ball to themselves and then instead of catching it, they will set it to the other kid. They should push the ball upwards, straightening their arms into parallel lines in one smooth, direct motion. The other kid should be about 5 feet (or 1.5m) away and they will catch the ball. The child setting the ball can remain seated and the other child can stand and catch the ball and return it to their partner. After 10 times, they can switch turns. To make this drill more difficult, increase the distance between the kids by having them take a large step backwards. To set the ball further, they will need to push their arms more diagonally rather than straight up. You can increase the distance so that the kids are up to 10ft (about 3m) apart total.
Teach proper hand placement. Have them practice catching the ball. Have them practice pushing the ball upwards.