There are many places to put your stories online for free. Some art sites such as http://www.deviantart.com let you post your child's art as well as stories and poems. http://www.booksie.com/ and http://storywrite.com/ are both a very large and popular sites for sharing stories of all sorts (I personally prefer booksie).
The best choice may be a similar site geared specifically towards children - http://www.kidpub.com/
Publish the story and post us link so we can check it out! We could all use a good story. And there's nothing quite like seeing real live feedback to encourage a talented kid to write more.
