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Originally Posted by Geofizz 
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I think Lynn is suggesting levels B/C was thinking of the "guided reading levels" or Fountas & Pinnell
Dang, you're right! I get those confused. DRA is developmental reading assessment, which is what my kids use now. My kids used the Guided Reading System (the letter system) in Kindergarten -- it's easier than looking for "level 1" which varies, as Geofizz noted. Level A is absolute beginning.
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Another easy rule of thumb is "5 words" per page rule. If there are more than 5 words on a page that she can't decode, then the book is too hard. That works pretty well for the earliest levels.
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However, if she's not yet 5, I'd actually back way off reading instruction unless she's really driven to read. If she's not driven to read, it's better to wait. What you really don't want is to have reading be a chore for her. Reading should be fun, cuddle time. You can "work on" important skills for reading by reading to her, telling stories together, guiding her through recounting things that happened to her, playing letter games and just talking to her. Decoding is just one of the skills (an important one, mind you), but she also needs rich vocabulary, rich experiences to relate to what she's reading and to want to read.
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