They learn to concentrate. To begin with it's only for very short periods but as they get more confident and begin to 'stay in the lines' they spend longer and longer and their attention span improves. It also gives young brains and body time to recuperate from their very busy lives, and helps in situations where they have to sit still - at the doctors, dentists, elderly relatives or when they're flying.
They begin to learn hand eye coordination, which helps with their fine motor skills. Initially they will simply grasp the crayon or pencil, but eventually they will learn to hold it correctly and direct the crayon where it should be going. They'll obviously learn all the colours they're using and the shapes they can draw and learn to be proud of their output and appreciate the all the praise heaped on them for their masterpieces.
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