Mold the children's minds. Teach them about the wonders and dangers of the world. Take them to a park and play around. Name the insects flying through the air and teach the kids how to catch them. Help them identify trouble like wasps and boys. Play simple games and teach the children sportsmanship and other values.
Experience is the grandparent's trump card. You will know more about the world than anybody else. Teach them about the history that you have lived through. Show them the pitfalls that you have encountered and most of all the lessons that you have learned.
Teach your grandchildren about your hobbies. Gardening, cooking, collecting, etc. are all interesting hobbies for you and your grandkid.
Grandparents are a font of wisdom and fun. Be that way to your grandkid.