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Your first grader is learning to "crack the code" of the written word. First graders learn phonics, the sounds of all letters and letter combinations. They apply phonics knowledge to figuring out or "decoding" words that they do not know by sight. Learning how to crack the code of reading also helps your first grader spell words he wants to use in his writing.
First graders know many words by sight. At the end of first grade, children typically know at least 150 "sight words," or common words, such as "the" and "no," that they recognize with ease. They learn sight words through repeated exposure in reading and by using these words over and over again in their own writing. When a first grader has a strong store of sight words, she can use her "known words" to help her figure out new words. For example, she can use "in" to help her figure out "chin" and "thin."
First graders can read simple books smoothly, but generally read word-by-word. By the end of the year, the typical first grader can read simple books such as Eat Your Peas, Louise! or Little Bear accurately, by identifying all the words correctly. Most first graders read word-by-word instead of in phrases, and they read fairly slowly, especially if they are reading a book for the first time. They become smoother readers by reading the same books over and over again. Although some first graders read to themselves, it is easier for most to read aloud. When your first grader reads aloud, he can hear himself as he tries to decode new words.
First graders can detect their reading mistakes. The typical first grader knows when he has made a reading error when the story suddenly does not make sense. While your first grader cannot correct all the errors she makes in reading, she is beginning to learn some strategies to "fix" her mistakes. Common strategies include rereading lines of a book to try it again, looking for a known word within a new word, and asking a friend or grown-up when she can't figure it out.