It’s actually very easy: Play an open sixth string note, followed by the first fret of the sixth string with your first (pointer) finger. Then play the second fret on the same string with your second finger. Then the third with your third (ring) finger, and finally you play the fourth fret on the sixth string with your fourth (pinky) finger. Incidentally, this movement up the neck of one fret a time (or half-step) is called the Chromatic Scale, which is where this exercise gets its name.
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While four years old is a little young for formal guitar lessons, it's not too early to begin teaching your child musical concepts that will be important once they are old enough for guitar instruction at School of Rock. Your 4-year-old can participate in the Little Wing music program to learn fundamental concepts through fun, dynamic musical activities. 
To get good touch in your strumming hand, it’ll take longer than 10 hours. It’s about reps. Try to consider the amount of finesse you are hitting the strings with. Do a little research on palm mutting and other useful strumming techniques. If it sounds nasty at first, that’s cool. Your fingers and wrists will start to adjust. Focus on getting quality sounds out of the guitar.
The simplest answer and the one that no student that ever wants to hear is practice. Changing chords is the process where many beginners fail, and quit. But after that, the rewards will be simply impressive. There are a few tricks to get a chord transition to happen faster. Use a metronome: Set it on four beats and set it as fast or as slow as you want. Then get a chord in your mind, say D. When the metronome reaches its last beat, press down the strings. When it happens again, strum it and let it free. Then again. Do this 10 to 20 minutes a day and in less than a week, the chord progression will begin to sound much better.
As a beginner, it is best to avoid making a pawn shop, flea market, or yard sale purchase unless you are shopping with somebody who has experience in purchasing a guitar. Having never purchased a guitar, you may not know what to look for in terms of damage or guitar quality. With that being said, a local music retail shop is your best bet. You may also shop online with a reputable company, although be sure to review the business’ return policy.
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