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Originally Posted by Icequeen_in_ak 
She is home schooled, so no, she's not involved in any gifted programs. Our situation up here is a little different in that many of our home schoolers are funded through our school districts (mainly came into play because we have so many rural areas that needed distance education capabilities) so each year they give us an allotted amount to utilize towards their education.
That is why I'm confused as to why they want her tested. I could understand if she was in a brick and mortar setting.
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If the district isn't testing for access to specialized services, then I can think of 2 reasons:
1. Funding. If giftedness is classified as a special education need in your district, then perhaps the district will receive more funding for every special education student it identifies. Money is usually a motivator for an institution.
2. Data collection/Research. Another reason would be if there is some protocol to test some or all students in the district for information gathering and research purposes. I'd ask what will happen to the data collected.
To answer your question though, the advantage to testing is to gain some insight into a child's learning processes. It can clarify and/or identify learning issues. In our case, we gained some helpful information, because both children are not entirely globally gifted (gifted on all indices). As
loraxc mentioned, the subtest scores were of most interest because they revealed unevenness and gave us more specific information about strengths and weaknesses.
If you don't think you need that information from testing, then by all means, you can forego it, especially if you aren't trying to access special programs.
You raise concerns about labeling and ask what will happen if she "evens out" as she gets older. I think it's a myth that gifted children "even out". I think some lose their passion for learning. Often it happens because they've been bored to distraction in unsuitable learning environments.
We've worked hard to avoid labeling issues with our dc. When they were assessed, we didn't tell them it was to access gifted programming. At the time of the assessment, we explained that they were going to do some puzzles and problems, so that we could figure out how they learn and what's the best kind of class for them to learn in. After they entered the gifted program, we explained that it was one option but there were others that students might choose, including language immersion (which some of their gifted friends opted for), exclusively home learning, staying in the regular class (which other friends opted for)...With so many educational options, I haven't found labeling to be a real issue.
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