This is fantastic! We need to grow this post, add to the list, and build more self sufficient patriots!
Here are some more:
The Little Red Hen
It's like Atlas Shrugged for Children
http://tuttletwins.com/?ap_id=shotsfired
This is a series of books specifically designed to set kids on the path to liberty! Note I did include my aff code, if you prefer i not get commission just remove it :)
The three little pigs
Teaches property rights!
Bedtime Stories for Budding Patriots
Sows the seeds of liberty in the minds of children that are being indoctrinated by government schools.
That's my contribution for now, liberty on my friends.