Not a teacher, but mom to a current and former (now in 4th grade) 1st grader. One of my DD's (and actually mine too) favorite "spelling" homework assignments was called Make A Word. The teacher took a 7- or 8-letter word each week and made it the "mystery" word for the week. Then she alphabetized the letters in the word. The kids (with help from mom and dad) made as many 2,3, etc letter words as they could from the letters in the mystery word. The mystery word was cleverly told to the students (maybe a major word in a story for that week, etc) by the teacher.
Parents were encouraged to help with this assignment. My version of helping was to look at the letters and ask DD questions that would lead her to the right word. For example, if the letters were A B L L N N O (mystery word balloon), one of my questions might be "What do you use to play catch?" She would say "BALL", then figure out how to spell it with the letters she had. It was a lot of fun for us both to work together!
I'm not sure I described it well, and I actually have no idea if my current 1st grader's teacher will do this. When DD2 was still in preschool, even she liked helping her sister with this assignment!, so I hope her teacher does it as well!