I had one of each - ds learned by sounding things out and building them up from bits. That's how he learned to talk to. Dd learned by learning the shapes of the words and then assigning meaning to the chunks. It's how she learned to talk too -- she'd have these great 'phrases' where you could tell what she was saying by intonation, and then suddenly, boom, there would be words there. Her beginning spelling was very similar. She'd have all the letters, but not the order. Snow could be "Sown" or "Snow" or "Swon" or "Snwo". She got a healthy dose of phonics in 1st grade and has blossomed into a great speller.
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In psycholinguistics, these processes are termed "bottom up" and "top down". Some people focus more on the bottom up processes and are more detail oriented. Others are 'big' picture readers. There's a large developmental aspect to it as well. Most children start 'reading' by learning a few chunks, then they learn the pieces of the chunks and start sounding out, then they start recognizing patterns and putting the pieces back together as chunks. Most adults read by the shape of the word and not by sounding it out. Only when we hit words we've never encountered before (novel names, unfamiliar terms etc.) do we have to sound them out. But if you are a top-down reader, you may not bother to sound things out. It wasn't until I actually had to teach the term "arcuate fasciculus" that I learned to pronounce it. I remember reading the book Eragon and it wasn't until I heard someone say King Galbatorix that I realized I'd never sounded out the word. He was just King Gsomething in my mind. My husband and my son, on the other hand, have to stop and sound everything out.
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Most teaching programs can (and should) focus on both kinds of skills - at least for English. If you're learning Spanish or Italian, you can skip the sight words and analogy because things can always be sounded out. If you're learning English, you need to recognize some patterns without sounding them out (sight, fight, light, right..) and some things by sounding them out.
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