During the past five years, staff of the American Institute for Research (AIR) in Palo Alto, California have been developing, field testing, and revising a guidance system especially suited to systems of individualized education. A primary aim of AIR's Comprehensive Career Guidance System (CCGS) is to help each student plan wisely for the future. This paper has attempted to provide a rationale for, as well as examples of initial results from, the application of criterion-referenced measurement within an individualized career guidance system. Goals in the area of 'life' education have been identified and important indicator skills isolated. Educational experiences have been constructed which relate to these goals. Assessment of desired outcomes is attempted in terms of skill demonstration on items which relate directly to the goals of instruction. Results are used both to assist individual students in mastering desired skills and to improve the guidance system itself. (Author/BW)