THE METHOD USED AT THE BELLEVUE, NEBRASKA, PUBLIC SCHOOLS TO TEACH READING READINESS AND THE PHONETIC ANALYSIS OF WORDS IN KINDERGARTEN THROUGH GRADE TWO IS DESCRIBED. SUGGESTIONS FOR TEACHING THE READINESS SKILLS OF AUDITORY AND VISUAL PERCEPTION, VOCABULARY SKILLS OF WORD RECOGNITION AND WORD MEANING, AND THE PHONETIC ANALYSIS OF WORDS IN GRADES ONE AND TWO ARE GIVEN. THE SECTION ON PHONETIC ANALYSIS PROVIDES INFORMATION ABOUT CONSONANTS, CONSONANT BLENDS, DIGRAPHS, THREE-LETTER BLENDS, VOWELS, VOWEL VARIANTS, THE DOLCH READING LIST, RHYMING WORDS, LITTLE WORDS IN BIG WORDS, COMPOUND WORDS, MULTIPLE MEANINGS OF WORDS, SYNONYMS, ANTONYMS, HOMONYMS, ROOT WORDS, POSSESSIVES, AND CONTRACTIONS. A CHECKLIST FOR COMPREHENSION SKILLS AND ORAL READING IS INCLUDED. (RH)