Some southern states use fourth grade literacy rates to determine the number of correctional facility beds 15 years down the road.
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Phonemic awareness
The ability to notice, think about, and work with the individual sounds in spoken words.
Source: the National Institute for Literacy
For detailed information on the five components of effective reading instruction download Put Reading First: The Research Building Blocks for Teaching Children to Read—a free publication of the National Institute for Literacy available here.