Fishing for Compliments?

My newest obsession is fishing.  We are planning a trip to the cabin in September, and want to take James fishing at a reservoir up there.  So I went to Cabela's and bought James a little Batman fishing pole.  Naturally, I couldn't wait 'til September.  We've taken him fishing twice now at a local pond, and not caught anything.  I even caught a bunch of grasshoppers with him to use at bait, but that was really pretty gross for me to put those things on the hook!  I have big plans to take him up the canyon where the lake was more recently stocked, and try to catch something up there.  I am thinking maybe worms this time.

At the pond, all of the little tiny fish eat up the power bait, but none of them are big enough to get on the hook.  And I think the grasshopper I got on the hook was bigger than some of the fish!  I even tried standing in the water with a net, and dropped bait into the water to attract the fish.  They are just too quick!

Any fishing advice from experienced fisherpeople would be greatly appreciated!